Daily The Hindu editorial with grammar questions

Daily The Hindu editorial Reading comprehension 29-04-2020(soln)

Daily The Hindu editorial Reading comprehension 29-04-2020(detailed solution)
Directions (1-5): In the given passage, some words have been omitted. Choose the words that make the passage meaningful.


Q1. Select the word that can be filled in the blank A to make the passage meaningful.

a)getting
b)endorsing 
c)enforcing
d)managing
e)signalling 

Q2. Select the word that can be filled in the blank B to make the passage meaningful.

a)measure
b)precaution
c)rollout 
d)fallout
e)demand
Q3. Select the word that can be filled in the blank C to make the passage meaningful.
a)suit
b)notify
c)supersede
d)extend
e)incentivise
Q4. Select the word that can be filled in the blank D to make the passage meaningful.
a)selected
b)breached
c)informed
d)sought
e)opportunities 

Q5. Select the word that can be filled in the blank E to make the passage meaningful.

a)knowledge 
b)resources
c)work
d)appetite 
e)logic

Q6. According to  the passage, what did RBI made clear by assigning ₹50,000 crore exclusively for commercial banks to lend to mutual funds?


A.that it wants to reduce any build-up of liquidity strains at mutual fund houses in the wake of heightened volatility in the capital markets and increased redemption pressures. 

B. that it wants to tamp down on any build-up of liquidity strains at mutual fund houses in the wake of lowered volatility in the capital markets and increased redemption pressures. 


C.that it wants to tamp down on any build-up of liquidity strains at mutual fund houses in the wake of heightened volatility in the capital markets and increased redemption pressures.

a)Only A is correct 

b)Only B is correct 
c)Only C is correct 
d)B and C are correct 
e)A and C are correct  

Q7. Sentence X of the passage has been divided into four parts.One of these parts contain an error .Choose that part as your answer.Mark ‘no error’ as your answer if there is no error in the sentence.
1)a
2)b
3)c
4)d
5) No error

 

Q8. Sentence Y of the passage has been divided into four parts.One of these parts contain an error .Choose that part as your answer.Mark ‘no error’ as your answer if there is no error in the sentence.
1)a
2)b
3)c
4)d
5) No error

 

Q.9 Choose the word which correctly represents the word/phrase given below.


TAMP DOWN

a)arise 
b)elevate
c)suppress 
d)conclude 
e)desolate 

 

 

Q.10 Choose the word which correctly represents the word/phrase given below.


WINDING UP

 

a)completing 
b)firing someone 
c)desisting
d)considering
e)none of the above

 

SOLUTION

1)Signalling ,which means ‘sending signals’,fits into the context appropriately. Rest of the options can be easily eliminated ,provided that you are aware of the meaning of the given options and have comprehended the passage.
Let’s take a look at their meanings –
Endorsing- giving one’s approval to ,especially officially.
Enforcing– putting in motion or action
 Hence,signalling is the most apt word that makes the sentence contextually and  grammatically correct. 
Tip – If you find it difficult to eliminate unsuitable options,read the passage 2-3 times,keep in mind that you are here to practise,allowing yourself to make mistakes and then rectifying those mistakes in order to not make any mistake in the exam.




2)Fallout(n) ,which means ‘a negative side effect’,fits into the context appropriately. Rest of the options can be easily eliminated as they go against the context.You can easily figure out that the rest of the options go against the context, provided that you have comprehended the passage.

 

3) incentivise(v) ,which means’to provide with an incentive’,fits into the context appropriately.Rest of the options can be easily eliminated provided that you have read the passage carefully and are aware of the meaning of the given options, you will figure out that they either don’t fit into the context or go against the context.
Let’s take a look at their meanings-
Extend- elongate
Supersede -set something aside 
Hence, incentivise(v) is the most apt word that makes the sentence contextually and grammatically correct. 

 

4)Sought(v) ,which means ‘aimed at’,fits into the context appropriately

 
5) Appetite ,which means ‘desire ,passion’,fits into the context appropriately.Rest of the options can be easily eliminated,provided that you have read the passage carefully.
One can easily figure out that rest of the options don’t fit into the context at all.
 
6) e,It’s clearly mentioned in the 1st paragraph of the passage that RBI made clear on Monday that it wants to tamp down on any build-up of liquidity strains at mutual fund houses in the wake of heightened volatility in the capital markets and increased redemption pressures as a fallout of the COVID-19 pandemic. 


7) The error is in a,replace ‘proximately’ with ‘proximate’ as we need an adjective to qualify the noun ‘trigger’ to make the sentence  grammatically correct. 

8) The error is in d,replace ‘loan’ with ‘loans’ to make the sentence grammatically correct. 

 

9) TAMP DOWN – suppress ,reduce


10)WINDING UP – finishing,completing 

Complete Article

The Reserve Bank of India’s decision to open a special facility to ensure the availability of adequate liquidity for the mutual fund industry is a timely move in signalling to investors that the central bank is alert to the need to preserve financial stability in these challenging times. In assigning ₹50,000 crore exclusively for commercial banks to lend to mutual funds, the RBI made clear on Monday that it wants to tamp down on any build-up of liquidity strains at mutual fund houses in the wake of heightened volatility in the capital markets and increased redemption pressures as a fallout of the COVID-19 pandemic. The proximate trigger for the central bank’s move was last week’s announcement by Franklin Templeton Mutual Fund that it was winding up six debt funds — funds that collectively had assets under management (AUM) amounting to about ₹26,000 crore. The RBI has rightly recognised the urgent need to ward off any incipient contagion impact from the closure of these six funds. With the overall industry-wide AUM for debt funds at about ₹15-lakh crore, it was crucial for the banking regulator to reassure investors that liquidity need not be a concern while deciding on whether to retain or redeem their investments in these mutual funds. The Association of Mutual Funds in India (AMFI) had, separately, last week, sought to assure investors that a majority of debt fund schemes had “invested in superior credit quality securities” and had appropriate liquidity to back their normal operations.

 While the facility is a straightforward 90-day repo-based lending window from which banks can avail credit to provide loans to mutual funds, there are concerns about the banking industry’s willingness to expose itself to the credit risk involved in making these fresh loans. That the RBI was cognisant of this is evident in the way that the norms have been tailor-made to incentivise the banks to lend. From allowing banks to breach their 25% ceiling on held-to-maturity investments as a consequence of lending to mutual funds, to exempting the support extended from banks’ overall capital market exposure limits, the central bank has sought to ease the flow of credit to the fund houses. Still, if the recent experience of getting lenders to support the non-banking financial companies through a targeted long-term repo operation backed by ₹50,000 crore is any pointer, clearly the banking industry — beset by bad loans — appears to have little appetite for adding any credit that it deems risky. Moreover, with the economy still in lockdown and the credit ratings of even relatively well-established companies facing a real and not-too-distant threat of downgrades, how willing banks would be to use this facility to lend to debt mutual funds remains to be seen. The Centre may need to be ready to step in with direct intervention if the RBI’s gambit fails to ease the pressure on mutual funds.

Some Important Words from the Article 

 

1.HINGE ON (phrasal verb)-to depend on (something).

 2.TAMP DOWN (phrasal verb)-to reduce the amount, level, size, or importance of something.

 3.IN THE WAKE OF (phrase)-happening after an event or as a result of it.के परिणामस्वरूप

 4.VOLATILITY (n)-a tendency to change quickly and unpredictably.अस्थिरता

 5.REDEMPTION (n)-the action of regaining or gaining possession of something in exchange for payment, or clearing a debt.छुटकारा,ऋणमुक्ति

 6.FALLOUT (n)-the adverse results of a situation or action.नतीजा

 7.PROXIMATE (adj)-nearly accurate; approximate.निकटस्थ

 8.WIND UP (phrasal verb)-the process of closing a business that is not successful and has debts that it cannot manage or end something.समापन

 9.WARD OFF (phrasal verb)-to prevent someone or something unpleasant from harming or coming close to you.से बचना

 10.INCIPIENT (adj)-beginning to happen or develop.प्रारंभी

 11.INCENTIVISE (v)-motivate or encourage (someone) to do something; provide with an incentive.प्रोत्साहित

 12.BREACH (v)-to be breaking a particular law or rule.उल्लंघन

 




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