Practice Mock Test - 04

Directions (Q. 51 - 65): Read the passage carefully and answer the questions given below it.

Top government officials can't resist blaming the woes of the Indian economy - slackening investments, slower growth, a wobbly rupee, among others - on the ongoing turmoil in eurozone economies like Greece. At the risk of sounding like a "nattering nabob of negativism", to borrow an expression of Prime Minister Manmohan Singh, nothing could be further from the truth. These problems stem from policy uncertainty, if not paralysis; from a government that has abandoned its reform agenda.

The country has a booming $1.7-trillion economy that has integrated with the global economy and attracted $247 billion of Foreign Direct Investments (FDl) since 2000. It is the world's second fastest growing economy, with GDP growth averaging 8.2% per annum over the last-six years. But thanks to policy inaction, slower growth due to declining investments has kicked in since last year. FDI inflows in particular have been declining sharply to $32.9 billion in 2010-11 when compared to $41.8 billion in 2008-09.

Not only have FDI inflows slowed down, outflows due to repatriation of investments have also gone up to $10.7 billion in 2011, according to Nomura Research. The reasons include delays in the approval of big-ticket investment proposals; pursuit of 'environment-sensitive' policies in denying forest clearances for projects in steel and mining; and delays in land acquisition. Investors have also been concerned by the threat of retrospective taxation, especially for offshore Mergers and Acquisitions (M & As). A comparison of actual FDI, vis-a-vis the potential level determined on the basis of macro-economic factors showed that "actual FDI, which has generally tracked the potential level till 2009-10, fell short of its potential by about 25% during 2010-11 ... this large divergence between the actual and the potential was partly on account of rise in policy uncertainty", according to a recent Reserve Bank of india (RBI) study on 'Foreign Direct Investment Flows to India'.

The retrospective amendment to income tax laws in the Union Budget for 2012-13 is the latest source of uncertainty that could dampen overseas acquisitions of assets here. The government's defence is that India is not a tax haven for For. But the reality is otherwise. For example, 1O-year tax holidays have been introduced in the tax law precisely to attract foreign investment, and this has worked very well. It was certainly successful in attracting a lot of investment in telecom that is the poster child of reforms.

A lot of'foreign investment' into India is, in fact, money laundered out of the country and is now being routed back through tax havens like Mauritius. In fact, as much as 39% of the FDI that has come into the country between 2000 and February 20 12 comes from Mauritius. This route has not been plugged to this day. It is open to the Indian government to amend its tax treaty with Mauritius, or indeed terminate it Such a drastic step was taken by Indonesia that was unhappy with the use of the Mauritius route by foreign investors. But the Indian government, no doubt for its own strategic reasons, has not taken such a step, including the fact that there has been considerable resistance to change from Mauritius itself. Besides Mauritius, FDI to the country comes from other tax havens like the Cayman Islands, British Virginia, Bermuda, Virgin Islands, Malta, Bahamas, Isle of Man among others- all of which amount to less than half of India's FDI flows of $247 billion from 2000 to February 2012. So much for the tax haven argument!

The upshot is that prospective investors are bound to rethink their exposure just when the Indian economy needs more FDI to build roads, ports and airports of $500 billion over the next 10 years. The government must get its act together and clear the decks for an acceleration in FDI in flows. Doubtless, some foreign investors will continue to invest in India but multinational companies cannot be expected to do business here in an uncertain policy environment. Investment is an act of faith. Reforms must be taken to restore it.

While the policy regime has become more liberal, there is still some distance to cover in streamlining procedures; removing sectoral caps in insurance, retail trade and the financial sector. More FDI will not flow in unless the hassle component of the regulatory apparatus is reduced. India must compete aggressively for investments to restore the shine to its growth story. Blaming it all on the eurozone economies is a recipe for further inaction.

51. With regard to a recent study done by the RBI on Foreign Direct Investment flows to India, find the correct statement(s).

(A) A wide variation in actual FDI and its potential level was largely due to the rise in policy uncertainty.

(B) During 20 I0-11 actual FDI remained about three-fourths of its potential level.

(C) Till 2009-10 the actual FDI and its potential level were almost at the same level.

1) Only (A)
2) Only (A) and (B)
3) Only (B) and (C)
4) Only(C)
5) All (A), (B) and (C)
52. Which of the following may prove a deterrent for foreign investors who wish to invest in India?
1) Tax holidays announced by the Government of India.
2) Retrospective taxation
3) Unplugging of Mauritius route through which a huge amount of money laundered from India is routed back to India.
4) Only 1) and 2)
5) Only 1),2) and 3)
53. Which of the following is incorrect in the context of the Indian economy as mentioned in the passage?
1) It is the world's second largest economy with GDP growth averaging 8.2% per annum over the last six years.
2) In comparison to 2008-09 FDI inflows have sharply declined.
3) The country is a $1.7 -trillion economy.
4) Owing to declining investment the growth rate has shown downtrend since last year.
5) All the above are correct
54. Which of the following is/are the reason(s) of slowed FDI inflows in India?
1) Denying forest clearance for selected projects
2) Delays in the approval of big-ticket investment proposals
3) The retrospective taxation on income tax, as amended in the Union Budget for 2012-13
4) All the above
5) None of these
55. Which of the following is true with regard to strategic economic policy adopted by the government of India?

(A) India cannot afford to plug Mauritius route because about two-fifths of FDI between 2000 and Feb 2012 has come into this country only through this route.

(B) The drastic step taken by Indonesia has set a bad precedent for India.

(C) One of the reasons. of not plugging Mauritius route is that the money laundered out of the country is routed back through Mauritius. India fears that if it closes this route the money laundered out of the country may not come back.

1) Only (B) and (C)
2) Only (A) and (B)
3) All (A), (B) and (C)
4) Only (B)
5) Only (C)
56. Which of the following is/are the repercussion(s) of the government's uncertain economic policy?

(A) Slower economic growth
(B) Slackening investment
(C) Slower outflows

1) Only (A)
2) Only (B)
3) Only(C)
4) Only (A) and (B)
5) All (A), (B) and (C)
57. Which of the following has been suggested by the author to woo foreign investors?

(A) The government should make a clear-cut policy regarding foreign investment in India.

(B) Policy reforms must be taken to restore the faith of the investors.

(C) Special tax holidays must be allowed to. foreign investors.

1) Only (A) and (B)
2) Only (B) and (C)
3) Only (A) and (C)
4) All (A), (B) and (C)
5) None of these
58. Find- the incorrect statement(s) in the context of the passage.

(A) though policy regime has become more liberal, yet- there is requirement of streamlining the procedures.

(B) The regulatory norms should be made more practical.

(C) While providing insurance cover, a lenient view should not be taken.

1) Only (A)
2) Only (B)
3) Only (C)
4) Only (A) and (B)
5) All (A), (B) and (C) are correct
59. In the given passage the author has used a phrase 'clear , the decks'. What do you mean by this phrase?
1) To clean the downstairs or upstairs area in a bus, ship or train.
2) To clean a tape or records
3) To get ready to start something new by finishing any work that has to be done
4) Getting rid of any problem that comes in the way
5) Both 3) and 4)

Directions (Q. 60 - 62): Choose the word/group of words which is MOST SIMILAR in meaning to the word/group of words printed in bold as used in the passage.

60. Upshot
1) firing
2) direction
3) suggestion
4) threaten
5) conclusion
61. Repatriation
1) sending back
2) withdrawal
3) deposits
4) demand
5) encashment
62. Woe
1) pursue
2) solicit
3) trouble
4) flourish
5) wonder

Directions (Q. 63 - 65): Choose the word/group of words which is MOST OPPOSITE in meaning to the word/group of words printed in bold as used in the passage.

63. Wobbly
1) stable
2) varying
3) stagnant
4) weekening
5) prospering
64. Divergence
1) difference
2) similarity
3) uniqueness
4) deviation
5) variation
65. Hassle
1) hard
2) facilitation
3) obstruction
4) problematic
5) tough

Directions (Q. 66 - 70): In the following questions, a sentence has been given with some of its part in bold. To make the sentence correct, you have to replace the bold part with the correct.alternative given below: If the sentence is correct as it is, please give 5) as you answer (i.e, No correction required).

66. Competition is tough in the seed market, which may explain why are marketing gimmicks often used to woo farmers.
1) why are gimmicks marketing
2) why marketing gimmicks are
3) marketing gimmicks are
4) why gimmicks are marketing
5) No correction required
67. From being a teacher, chef, coach to being a true friend, there are many a roles father plays for his child.
1) there are many role
2) are there many role a
3) there are many roles a
4) there are roles many
5) No correction required
68. I don't think Rahul has as big expectations from UP as the media makes up.
1) the media makes out
2) the media makes over
3) the media makes for
4) the media makes up for
5) No correction required
69. An error had been made regarding the birth date of my father at the time of filling up the form.
1) the birthday of
2) the birth of date for
3) the birth date's of
4) the date of birth of
5) No correction required
70. His supporters see the withdrawal of his petition from the Supreme Court as a letdown.
1) let in
2) let out
3) let off
4) let into
5) No correction required

Directions (Q. 71 - 75): Below is given a single word with its meaning in different contexts as options. You have to select all those options which are synonyms of the word when the context is changed. Select the correct alternative from 1), 2), 3), 4) and 5) which represents all those synonyms.

71. Scintillate

(A) glint
(B) glisten
(C) sparkle
(D) delight

1) Only (D)
2) Only (C)
3) Both (A) and (B)
4) Only (A), (B) and (C)
5) All (A), (B), (C) and (D)
72. Hullabaloo

(A) excitement
(B) cherish
(C) murmur
(D) uproar

1) Only (A)
2) Only (D)
3) Only (A) and (D)
4) Only (A), (B) and (C)
5) Only (C)
73. Invigorate

(A) inquire
(B) investigate
(C) refresh
(D) strengthen

1) Only (A)
2) Only (A) and (B)
3) Only (B)
4) Only (D)
5) Only (C) and (D)
74. Parole

(A) pledge
(B) promise
(C) partner
(D) pathos

1) Only (D)
2) Only (A)
3) Only (C)
4) Only (A) and (B)
5) Only (B)
75. Flippant

(A) frivolous
(B) fluent
(C) flaunt
(D) impertinent

1) Only (D)
2) Only (C)
3) Only (B)
4) Only (B) and (D)
5) Only (A) and (D)

Directions (Q. 76-85): Read each sentence to find out whether there is any grammatical or idiomatic error in it. The error, if any, will be in one part of the sentence. The number of that part is the answer. If there is 'No error', the answer is 5). (Ignore errors of punctuation, if any.)

1) In the Babri Masjid case, there / 2) are contradictory opinions of many / 3) historians that there was / 4) no temple there at a time. / 5) No error

Replace 'a' with 'any'

1) This book is full of world's most / 2) inspiring epitomes and thoughtful quotations / 3) that surely will influence / 4) life, career and character of all ages and mood. / 5) No error

Replace 'mood' with 'moods'

1) When t examine myself and my methods of thoughts, / 2) I came to the conclusion that / 3) the gift of fantasy had meant more to me / 4) than my talent for absorbing positive knowledge. / 5) No error

Replace 'examine' with 'examined'

1) I studied the lives of great men and famous women / 2) and I find that the men and women who got to the top were those who did / 3) the jobs they had in hand with everything / 4) they had of energy and enthusiasm and hard work. / 5) No error

Replace 'find' with 'found'

1) Remember, in the space of time, all successful / 2) people have had to suffer many setbacks in life / 3) but they do not / 4) lose their hearts easily. / 5) No error
1) The first step to / 2) getting the things you want out / 3) in life is to / 4) decide what you want. / 5) No error

Replace 'in' with 'of'

1) There are two kinds of failures: /2) those who thought and never did, / 3) and those who / 4) did and never think. / 5) No error

Replace 'think' with 'thought'

1) The man who was the Prime Minister then, / 2) the late PV Narsimla Rao, was / 3) never able-to unsling / 4) the albatross from his neck. / 5) No error

Add 'around' after 'from' because the correct phrase is 'albatross around one's neck'

1) You cannot invent the purpose of life / 2) by asking someone else - the only / 3) way you will ever get the right / 4) answer is by asking yourself. / 5) No error

Replace 'invent' with 'discover'

1) Vedanta Aluminium Ltd served / 2) a three-month notice / 3) to Odisha government for shutting down its / 4) Lanjigarh alumina refinery due to acute shortage of bauxite. / 5) No error

Replace 'to' with 'on'

Directions (Q. 86 - 90): Rearrange the following six sentences (A), (B), (C), (D), (E) and (F) in the proper sequence to form a meaningful paragraph and then answer the questions given below.

(A) If you are optimistic, your attitude, approach and thinking will obviously be positive.

(B) Attitude is something that is. not much easy to describe in a few sets of words.

(C) If you are of pessimistic attitude, then your attitude will tend to bend you in your negativities.

(D) In fact, it is one's personal approach to one's life.

(E) Because a negative attitude is a combination of different emotions and feelings like fear, anxiety, tension, depression, stress and agony etc.

(F) In true sense, it's a very individualistic thing that comes from within a person.

86. Which of the following would be the LAST sentence after rearrangement?
l) A
2) F
3) B
4) E
5) C
87. Which of the following would be the FIRST sentence after rearrangement?
1) C
2) B
3) D
4) F
5) A
88. Which of the following would be the THIRD sentence after rearrangement?
1) F
2) B
3) D
4) C
5) E
89. Which of the following would be the SECOND sentence after rearrangement?
1) B
2) A
3) E
4) C
5) F
90. Which of the following would be the FOURTH sentence after rearrangement?
1) A
2) C
3) B
4) D
5) E

Directions (Q: 91 - 100): In the following passage, some of the words have been left out, each of which is indicated by a number. Find the suitable word from the options given against each number and fill up the blanks with appropriate words to make the paragraph meaningful.

On the west (91) of India, lies a land of unspoilt beaches, white-washed churches and green fields bordered by dramatically (92) mountains. The wild cries of exotic birds echo (93) the vast expanses of green fields. You might even spot an Olive Ridley turtle (94) on the (95) of a faraway beach.

Goa has always been a (96) of mystery and magic - a land unique from all others, difficult to understand, (97) strangely (98). The notion of Go a as a gentle fabled land with sun-kissed beaches freeze-framed sometime ago when tourism (99) around visits to heritage homes, a quick pop-in at a country eatery and a round (100) of the popular sun-kissed beaches.

1) front
2) coast
3) place
4) state
5) direction
1) scattered
2) portrayed
3) carved
4) seen
5) sprout
1) under
2) during
3) beside
4) on
5) over
1) waiting
2) watching
3) making
4) resting
5) staring
1) sands
2) water
3) comer
4) height
5) layer
1) subject
2) land
3) sea
4) destination
5) matter
1) but
2) nonetheless
3) yet
4) despite
5) not
1) fulminating
2) boring
3) exhausting
4) horrible
5) fascinating
1) went
2) came
3) made
4) revolved
5) surrounded
1) trip
2) movement
3) motion
4) table
5) journey