Comprehension
Instructions
Study the passage below and answer the questions.
The change in the Government's focus, from coveting the cash balances of public sector undertaking (PSUs) to examining how these can be put to better use by them, is a welcome development. In the current investment - starved environment, there is certainly a strong macro - economic imperative for inducing PSUs to deploy funds in capex programmes. But, from a shareholder's perspective- and that applies to the Government as well - it is also important that funds in excess of their immediate investment needs, estimated at over Rs. 1 lakh crore, earn a reasonable return. This is made difficult by rigid and archaic investment norms. So, it is a double whammy, wherein idle money of state - owned firms neither gets invested in projects nor generates sufficient portfolio returns. The current guidelines on deployment of surplus cash by PSUs decree that 60 percent of these should be parked with public sector banks. The 'public sector' mutual funds requirement is outdated, when many of them promoted by the likes of UTI, SBI and LIC have roped in foreign partners, making these ventures little different from pure private sector fund houses. Now that the investment guidelines are to be reviewed by a Government committee, it may be best for the Government to just stipulate general prudential norms to be followed by PSUs. These norms could emphasise safety liquidity of investments, their diversification across asset classes and securities, and provisions against taking speculative bets, that expose shareholder funds to capital loss risks.
Study the passage below and answer the questions.
The change in the Government's focus, from coveting the cash balances of public sector undertaking (PSUs) to examining how these can be put to better use by them, is a welcome development. In the current investment - starved environment, there is certainly a strong macro - economic imperative for inducing PSUs to deploy funds in capex programmes. But, from a shareholder's perspective- and that applies to the Government as well - it is also important that funds in excess of their immediate investment needs, estimated at over Rs. 1 lakh crore, earn a reasonable return. This is made difficult by rigid and archaic investment norms. So, it is a double whammy, wherein idle money of state - owned firms neither gets invested in projects nor generates sufficient portfolio returns. The current guidelines on deployment of surplus cash by PSUs decree that 60 percent of these should be parked with public sector banks. The 'public sector' mutual funds requirement is outdated, when many of them promoted by the likes of UTI, SBI and LIC have roped in foreign partners, making these ventures little different from pure private sector fund houses. Now that the investment guidelines are to be reviewed by a Government committee, it may be best for the Government to just stipulate general prudential norms to be followed by PSUs. These norms could emphasise safety liquidity of investments, their diversification across asset classes and securities, and provisions against taking speculative bets, that expose shareholder funds to capital loss risks.
Question: 1
The objective of the author in writing this article appears to be to
The objective of the author in writing this article appears to be to
Updated On: Sep 26, 2024
- advise the government in financial management of the surplus funds of PSUs
- analyse the possible ways in which PSUs could invest their surplus funds to make the same more productive.
- ensure better returns for private shareholders
- criticise the government for its archaic fiscal and investment policies
Hide Solution
Verified By Collegedunia
The Correct Option is B
Solution and Explanation
The passage focuses on discussing how the surplus funds of public sector undertakings (PSUs) can be better utilized for investment, emphasizing the need for improved investment practices and guidelines. The author analyzes the current situation and suggests ways for PSUs to invest their surplus funds more productively, making the objective of the article primarily about finding effective investment strategies for those funds. While options A, C, and D contain elements related to the topic, they do not capture the central aim as effectively as option B.The correct option is (B): analyse the possible ways in which PSUs could invest their surplus funds to make the same more productive.
Was this answer helpful?
0
0
Question: 2
What are the twin benefits that the author suggests would accure, if PSUs invest their surplus funds more prudently?
What are the twin benefits that the author suggests would accure, if PSUs invest their surplus funds more prudently?
Updated On: Sep 26, 2024
- Public sector and private sector banks would both get more - money into their coffers.
- Both the Government and private shareholders would earn more returns on their investments in PSU shares.
- Projects meant for general public good would get funds more readily; while the funds themselves earn good returns instead of being idly parked.
- None of these
Hide Solution
Verified By Collegedunia
The Correct Option is B
Solution and Explanation
The author does imply that more prudent investments would lead to higher returns for both the Government and private shareholders in PSU shares, which reflects a dual benefit.The correct option is (B): Both the Government and private shareholders would earn more returns on their investments in PSU shares.
Was this answer helpful?
0
0
Question: 3
It is implied in the passage that the Government.
A) had hitherto been unjustly siphoning off the surplus funds of PSUs.
B) is bereft of ideas when it comes to deciding where to park the surplus funds of PSUs
C) had always favoured channelising the surplus funds of PSUs into public sector banks.
It is implied in the passage that the Government.
A) had hitherto been unjustly siphoning off the surplus funds of PSUs.
B) is bereft of ideas when it comes to deciding where to park the surplus funds of PSUs
C) had always favoured channelising the surplus funds of PSUs into public sector banks.
A) had hitherto been unjustly siphoning off the surplus funds of PSUs.
B) is bereft of ideas when it comes to deciding where to park the surplus funds of PSUs
C) had always favoured channelising the surplus funds of PSUs into public sector banks.
Updated On: Sep 26, 2024
- A only
- B only
- C only
- A & B
Hide Solution
Verified By Collegedunia
The Correct Option is B
Solution and Explanation
A. is not implied in the passage; it doesn't suggest that the Government has been unjustly siphoning off the funds but rather discusses the need for better use of surplus funds.
B. is implied, as the passage indicates that the Government has rigid and archaic investment norms, which suggests a lack of innovative ideas in managing surplus funds.
C. is not explicitly stated; while the passage mentions that a significant portion of surplus funds is to be parked with public sector banks, it does not indicate that this has always been the Government's preference.The correct option is (B): B only
B. is implied, as the passage indicates that the Government has rigid and archaic investment norms, which suggests a lack of innovative ideas in managing surplus funds.
C. is not explicitly stated; while the passage mentions that a significant portion of surplus funds is to be parked with public sector banks, it does not indicate that this has always been the Government's preference.The correct option is (B): B only
Was this answer helpful?
0
0
Question: 4
Which of the following statements about mutual funds is not true in the context of the passage?
Which of the following statements about mutual funds is not true in the context of the passage?
Updated On: Sep 26, 2024
- 'Public Sector' mutual fund company is a misnomer now, as most of these companies have got 'foreign', private partners.
- Mutual funds of private sector banks alone give good returns
- Every PSU has to invest at least 30% of its cash surplus in public sector mutual funds
- All these
Hide Solution
Verified By Collegedunia
The Correct Option is C
Solution and Explanation
A. is true in the context of the passage; it states that "public sector" mutual funds have foreign partners, making the term a misnomer.
B. is not explicitly stated in the passage, but it can be inferred that the passage implies that the public sector mutual funds may not perform as well due to their outdated requirements.
C. is not true; the passage mentions that 60% of surplus funds should be parked with public sector banks, but it does not state that every PSU must invest at least 30% in public sector mutual funds.The correct option is (C): Every PSU has to invest at least 30% of its cash surplus in public sector mutual funds
B. is not explicitly stated in the passage, but it can be inferred that the passage implies that the public sector mutual funds may not perform as well due to their outdated requirements.
C. is not true; the passage mentions that 60% of surplus funds should be parked with public sector banks, but it does not state that every PSU must invest at least 30% in public sector mutual funds.The correct option is (C): Every PSU has to invest at least 30% of its cash surplus in public sector mutual funds
Was this answer helpful?
0
0
Top Questions on Reading Comprehension
- Read the excerpt from a Handicrafts Manual: ‘Advanced Knitting Techniques’ and answer the following questions by choosing the most appropriate answer.
THE FAIR ISLE METHOD: Fair Isle knitting is a traditional technique that involves using two or more colours of yarn in a single row to create intricate patterns and designs. This method requires careful tension management to ensure even stitches and prevent puckering. To begin, select your colours and cast on the desired number of stitches. As you knit, alternate between colours every few stitches, carrying the unused yarn along the back of the work. Mastering the Fair Isle technique allows you to create stunning visual effects in garments, accessories, and home textiles.
THE CONTINENTAL STYLE: The Continental knitting style, often referred to as “picking,” involves holding the yarn in the left hand while the right hand manipulates the needles. This method allows for greater speed and efficiency, particularly when working with complex patterns or multiple colours. To practice this style, start by casting on your stitches and using your left hand to tension the yarn. With each stitch, simply “pick” the yarn with your right needle, forming a quick and fluid motion. As you become comfortable with this technique, you may find that your overall knitting speed and comfort improve significantly.
THE SHORT-ROW TECHNIQUE: Short-row knitting is an advanced technique that allows for the creation of shaped garments, such as sleeves and shoulders, without the need for complex shaping. To make a sleeve using this technique, begin by casting on the required number of stitches. Work a portion of the row, then turn your work and return without completing the full row to create the “short rows” that shape the curves of the sleeve. To prevent holes at the turn, wrap the stitch before you turn your work. Repeat this process as needed to achieve the desired shaping and dimension of the sleeve. Once you have shaped the sleeve, you can then sew the side seams to connect the pieces of your garment and finally, complete the edges to ensure a clean finish. This method not only helps shape curves but also adds dimension to your piece, allowing you to enhance fit and style.- AILET BALLB (Hons.) - 2025
- English
- Reading Comprehension
- Read the following passage and answer the following questions by choosing the most appropriate answer.
The Story of Coffee
Coffee, a beloved beverage enjoyed by millions around the globe, has a rich and captivating history that spans centuries. The story of coffee begins in the ancient highlands of Ethiopia, where, according to legend, a goat herder named Kaldi discovered the stimulating effects of coffee beans. One day, Kaldi noticed his goats frolicking with unusual energy after eating red berries from a certain tree. Curious, he tried the berries himself and experienced a newfound alertness. This discovery soon spread to monasteries, where monks used it to stay awake during long hours of prayer. From Ethiopia, coffee cultivation and consumption spread to the Arabian Peninsula, particularly in Yemen, where the practice of roasting coffee beans and brewing the drink began to take shape. By the 15th century, coffee had become a popular beverage in the Islamic world, with coffee houses known as ‘qahveh khaneh’ emerging as social hubs for conversation, music, and intellectual exchange. These coffee houses became centers of culture and commerce, influencing the spread of coffee to Turkey and beyond, eventually reaching Europe. In Europe, coffee initially faced resistance from religious authorities who considered it a ‘Muslim drink’ and tried to ban it. However, its popularity persisted, and by the 17th century, coffee houses had sprung up in major European cities, becoming important gathering places for artists, writers, and thinkers. The stimulating effects of coffee were embraced during the Age of Enlightenment, where it was seen as a catalyst for intellectual discussion and innovation. The journey of coffee continued with the establishment of colonial plantations in tropical regions such as the Caribbean, Central and South America, and Southeast Asia. These plantations fuelled the global demand for coffee, transforming it from a regional specialty to a major commodity. The industrial revolution further accelerated coffee production and consumption, leading to innovations in coffee brewing methods and the development of instant coffee. In the modern era, coffee has evolved into a deeply ingrained part of daily life for people worldwide. Its cultural significance spans from the bustling cafes of Paris to the quiet coffee farms of Colombia. Today, coffee remains not only a popular beverage but also a symbol of social interaction, productivity, and enjoyment. Whether sipped slowly over a conversation with friends or grabbed hastily on the way to work, the story of coffee continues to unfold, intertwining with the histories and cultures of countless societies across the globe.- AILET BALLB (Hons.) - 2025
- English
- Reading Comprehension
- Read the following passage and answer the following questions by choosing the most appropriate answer.
The intricate world of modern manufacturing is a web of precision and innovation, where even the tiniest components play a pivotal role. One such element, often overlooked but crucial, is the sub-subpart. Whether it’s a carpenter fashioning a bespoke piece of furniture or an automobile engineer designing the next generation of vehicles, the creation of sub-subparts is a fundamental process that demands meticulous craftsmanship and cutting-edge technology. In the realm of woodworking, carpenters frequently work with sub-subparts like dowels, screws, and hinges. These minute components may appear insignificant, yet they determine the structural integrity and functionality of the final product. Crafting a dowel, for instance, begins with selecting the appropriate wood species, followed by precision cutting and shaping. The result is a perfectly cylindrical, sturdy sub-subpart that seamlessly joins two larger pieces of wood. The advent of computer-aided design (CAD) and computer numerical control (CNC) machines has revolutionised this process, enabling carpenters to create sub-subparts with unparalleled precision.
Similarly, in the automobile industry, sub-subparts are the unsung heroes of vehicle construction. Take, for instance, the ball bearing—a minuscule but essential component in the wheels and transmission system. Manufacturing these precision-engineered spheres involves intricate processes like forging, heat treatment, and precision machining. Modern techniques such as laser cutting and 3D printing have streamlined production, ensuring that these sub-subparts meet the demanding standards of the automotive sector. The manufacturing of sub-subparts is a testament to the convergence of traditional craftsmanship and cutting-edge technology. Whether it’s a carpenter’s workshop or a high-tech automotive assembly line, the quest for perfection in sub-subpart creation remains unwavering. The attention to detail and precision required in these processes is a testament to the dedication of craftsmen and engineers alike.
To conclude, while sub-subparts may be small in size, their significance in various industries cannot be overstated. Whether it’s a carpenter working on a timeless piece of furniture or an automotive engineer striving for superior performance, the manufacturing of sub-subparts is a crucial step towards achieving excellence in craftsmanship and technology. This fusion of tradition and innovation accentuates the essence of modern manufacturing.- AILET BALLB (Hons.) - 2025
- English
- Reading Comprehension
- Read the book descriptions for three different books and answer the questions by choosing the most appropriate options.
\(\text{The Politics of Change}\) \(\text{The Change in Politics}\) \(\text{Politics and Change:}\) A Global Perspective} In "The Politics of Change," political analyst Dr. Emily Harper examines the dynamics of social movements and their impact on policy reform. Through detailed case studies, she explores how grassroots organizations, protests, and advocacy campaigns shape public opinion and influence lawmakers. Dr. Harper provides insights into the strategies that successful movements employ and discusses the challenges they face in a complex political landscape. She discusses key strategies, such as coalition-building, media engagement, and the use of digital platforms to amplify voices. This book by veteran journalist Mark Stevens investigates the shifting political landscape in the 21st century. Focusing on major elections, emerging political parties, and the role of social media, Stevens analyzes how technology and demographics are transforming political engagement and voter behaviour. Through interviews with political leaders, campaign strategists, and everyday voters, Stevens uncovers how demographic shifts and technological advancements are reshaping political discourse in urban areas. He analyzes the implications of these changes for traditional political institutions and explores how movements like #MeToo and Black Lives Matter have disrupted conventional narratives. In this insightful work, international relations scholar Dr. Anika Patel presents a global analysis of political change across various regions. She explores the factors that drive political transitions, including economic shifts, cultural movements, and international influences. Dr. Patel emphasizes the interconnectedness of global politics and how local changes can have far-reaching implications. She analyzes various factors driving political transitions, including economic upheaval, cultural shifts, and the impact of globalization. She provides case studies from diverse regions, such as the Arab Spring, democratic movements in Latin America, and shifts in power in Asia. The book serves as a vital resource for understanding the complexities of political evolution in a rapidly changing world. - AILET BALLB (Hons.) - 2025
- English
- Reading Comprehension
- The levels of dissolved oxygen in the world's ocean waters are declining precipitously. Just like humans, fish need oxygen to survive, and so in ocean areas experiencing significant levels of oxygen scarcity, or hypoxia, fish populations are plummeting. Although some hypoxic areas, called "dead zones," occur naturally, hypoxia in coastal areas and inland waters is caused mainly by agricultural run-off and by discharge of industrial wastewater. More than one hundred permanent dead zones, many covering thousands of square miles, exist worldwide today.
Since reproductive success is the most critical factor in the sustainability of any species, the extent of this threat to marine life and genetic diversity can hardly be overstated. After several months in hypoxic waters, female fish produce fewer eggs. Moreover, hypoxic conditions serve to alter the normal ratio between two particular hormones manufactured during the embryonic stage when a fish's gender is determined. During gestation and under these conditions, the mother produces more testosterone (and less estradiol), which inhibits the development of female reproductive organs and other female characteristics in the embryo, while promoting the development of male traits.
The implications of declining oxygen levels extend beyond individual species to entire ecosystems. Marine biodiversity is at risk as species that cannot adapt to hypoxic conditions may face extinction, leading to a cascade of effects throughout the food web. Predators may struggle to find adequate prey, while other marine organisms, such as coral reefs, which rely on healthy fish populations for symbiotic relationships, may also deteriorate. The loss of biodiversity can disrupt ecosystem services that are essential for human communities, including fisheries, tourism, and coastal protection.- AILET BALLB (Hons.) - 2025
- English
- Reading Comprehension
View More Questions
Questions Asked in MAT exam
- In the following sentence, a part of the sentence is underlined. Beneath each sentence four different ways of phrasing the underlined part are indicated. Choose the best alternative among the four options.
There \(\underline {\text{have}\ \text{been}\ \text{heavy}\ \text{rainfall}}\) yesterday- MAT - 2018
- Sentence Correction
- Who among the following cannot be impeached?
- MAT - 2018
- Politics and Government
- Who is leading the LTTE delegation for the peace process with Sri Lanka?
- MAT - 2018
- International Organizations
- Who was the first UN Secretary General?
- MAT - 2018
- Politics and Government
- Which of the following sources yields the maximum revenue to the Union Government?
- MAT - 2018
- Politics and Government
View More Questions