List of top Verbal Ability & Reading Comprehension (VARC) Questions

Read the following passage and answer the question
Crypto assets, including private crypto currencies and non-fungible tokens, pose a unique challenge to regulators with their issuance as well as the transactions taking place beyond traditional channels involving banks, other financial intermediaries or central banks. With users able to transact on platforms located in other countries and transfer funds easily across borders, ability to tax these transactions and to halt the misuse of these channels for illicit purposes also becomes difficult through unilateral action. Therefore, India and some other countries have been calling for concerted action by all nations and a standardised regulatory framework to regulate these assets. The Crypto-Asset Reporting Framework (CARF), drafted by the OECD, is in response to this. It primarily seeks to enable exchange of information between countries so https://link.testbook.com/bQQ2EkH1bpb https://link.testbook.com/bQQ2EkH1bpb Page- 5 that all crypto asset related transactions or money transfer done by the residents of a country are available with the government and regulators. Indian regulators were extremely concerned about the surge in trading in crypto assets during the pandemic; about 9 to 11 crore users were estimated to be indulging in speculative trading in these assets. But the Centre’s move to tax gains made in trading crypto assets at punitively high rate in the Union Budget of 2022 and mandating crypto trading platforms to deduct TDS of 1 per cent on sale of these assets have helped restrain this speculative fervour effectively. Trading volume on Indian crypto trading platforms is down over 75 per cent over the last one year. But India, as well as other countries are yet to decide whether holding and trading in crypto assets is a legal activity or not. Also, it is currently not possible to acquire information regarding crypto trading transactions by Indian residents on overseas platforms. The CARF regulation outlines a way in which information can be collected from crypto asset trading platforms and service providers and shared with the countries where the traders or users reside. The framework addresses four areas – one, the scope of crypto currencies covered by the rules, two, the entities and individuals mandated to collect the data and the reporting requirement, three, the kind of transactions which have to be reported and four, the due diligence needed to identify the crypto asset users and to identify the tax jurisdiction to which they belong so that information can be exchanged. The model rules contained in the CARF can be included in the domestic laws and the OECD is planning to work with all jurisdictions over the coming months to implement the framework. The OECD has met decent success with the Common Reporting Standard which has resulted in over 100 countries exchanging information regarding 111 million financial accounts in 2021, helping check tax evasion. Replicating this with crypto transactions may be the way forward to bring all countries onboard in adopting similar rules for regulating crypto assets. Though regulatory scrutiny could result in reducing the speculative activity in this segment, users will be pleased as adoption of these rules will make trading and use of crypto assets a legal activity. This will ensure that those who wish to mine and trade in these assets can continue doing so, but under full regulatory glare.
The fundamental requirement for crypto currency regulation is………………………….
Read the following passage and answer the question
Global equity markets turned extremely nervous this week with market benchmarks declining sharply, the primary reason behind this sell-off being the gloomy growth outlook for 2023 projected by the central banks of the US, UK and the European Union, and their resolve to continue aggressive monetary tightening next year. The overarching concern of the three central banks appeared to be pulling inflation down towards their long-term targets and all of them indicated that further monetary tightening was warranted until price stability was restored. The US Federal Reserve hiked the Federal Funds Rate by 50 basis points to 4.25-4.50 per cent and has indicated that the pace of rate hikes will not slacken next year despite inflation moving lower in November. It has also indicated that the terminal rate could be 5.1 per cent, instead of 4.5 per cent projected in September 2022 and that rates will not begin moving lower until 2024. The Bank of England and the European Central Bank too hiked their policy rates by 50 basis points, in a bid to tame raging inflation. Both the US Fed and the ECB used the term ‘restrictive’ to describe the policy stance which they intend to adopt to curb demand. The attempt appears to be to move demand lower to address the demand-supply mismatch. Of concern is the fact that all three central banks appear to be willing to sacrifice near-term growth to ensure price stability. This monetary tightening so far in 2022, is already beginning to impact growth in these regions. The Chairman of the Federal Reserve Jerome Powell pointed out that consumer spending has slowed reflecting lower disposable income, prices in the housing segment have cooled due to rising mortgage rates and investments by businesses are coming down. Given the delay in transmission of the rate hikes, demand is expected to further dampen next year, leading to lower growth rates for 2023. The Federal Reserve Board members are now projecting the real GDP growth at 0.5 per cent in 2023, down from the earlier projection of 1.2 per cent. The Bank of England retained the projections given in its November policy meeting — that GDP will continue to decline throughout 2023 and in the first half of 2024 as well due to the impact of high energy prices and rising interest rates. The Euro system staff projections for euro area have also been revised lower for 2023 to 0.5 per cent and they expect a shallow and short-lived recession ahead. This gloomy prognosis for growth in the world’s leading economies does not bode well for India’s merchandise and services trade. The difficult external environment will challenge growth in the domestic IT services industry which is currently fuelling domestic consumption. External finance for Indian corporates will also be difficult due to tightening liquidity, rising interest rates and weakening rupee. While India’s growth projections for next year are among the highest, the economy can not remain insulated from slowing global growth. RB I will have to be mindful of these factors which deciding on its future policy actions.
The capital investments in the Indian Corporate companies are affected by……..
Read the following passage and answer the question
The Supreme Court’s timely intervention has halted the forcible eviction of some 50,000 people from Haldwani in Uttarakhand, where the occupants are accused of squatting on railway property for decades. The Uttarakhand High Court had taken a tough stand against the residents, and passed a slew of directions that would have entailed their eviction within a week, backed by force, including the deployment of paramilitary forces. It is significant that the Bench underscored the human angle to the issue and spoke about the need for rehabilitation before eviction while staying the order. In an earlier round of litigation over the same land, which adjoins the Haldwani Railway Station, court orders had allowed proceedings against individual occupants under the Public Premises (Eviction of Unauthorised Occupants) Act, 1971, to be completed. This time, too, it was on a PIL that the High Court had passed its orders. The High Court’s detailed judgment shows that the residents’ claim is traceable to a 1907 Office Memorandum that says the area be managed under rules pertaining to ‘nazul land’. The court has ruled that it was not a government order but only a communication on how to manage the land, and it does not amount to declaring it as ‘nazul land’, that is, land that has fallen into the hands of the state by escheat. As one of the nazul rules is that there cannot be sale or lease, the court rejected all claims made by occupants based on purported documents for lease, sale, and, in some cases, purchase through auction. Conflicts between occupants of public land and the state that wants to reclaim the land are a never-ending saga in the country. A shortage of housing, as well as inadequate recognition of the right to shelter, means that large masses of people encroach on vacant land, be it on the bed of water bodies or government property. This often leads to attempts to evict the occupants and spawns litigation. Invariably, there are claims to occupancy rights based on long years of stay at the same location. There are court judgments that stress rehabilitation measures and consultation with the oustees before eviction. Some courts have also recorded the view that mandatory rehabilitation may prove to be an incentive for encroachment. The Haldwani eviction effort has unfortunately taken communal overtones, and there appears to be a clamour for the early eviction of the Muslim residents. India does not have a good record on rehabilitation of those evicted from public spaces, and this case presents an opportunity to the Supreme Court to lay down the law on meaningful rehabilitation as well as effective prevention of encroachments.
Rehabilitation ………………..
Read the following passage and answer the question
The stock market regulator’s decision to extend the suspension of trading in derivative contracts of paddy, wheat, chana, mustard, soyabean, crude palm oil and moong by another year, is surprising, given the obvious ineffectiveness of this measure in controlling price increases. Trading in the futures contracts of these commodities was initially suspended for a year in December 2021, in a bid to check food price inflation. But prices continued to surge in the months following the ban, mainly due to increase in consumption following unlocking of the economy after the third wave of the pandemic, and also the supply shock caused by the Russia-Ukraine conflict. Price movements following similar trading suspensions in the past too reveal that suspension of trading does not help in checking prices. Also, with CPI for cereals easing a little in the last two months, regulators could have waited for market forces to bring down prices. While policymakers may be focused on controlling inflation, they need to recognise the impact of the ban on the agri-commodity derivatives market in India. SEBI’s move has resulted in halving the daily turnover of commodity derivatives exchanges over the past year. Commodities exchanges have already been struggling to regain investor trust since the NSEL scam in 2013. A sudden suspension of derivatives trading in important commodities, extended over many months, creates uncertainty which will drive away traders and hedgers. Policymakers need to recognise the important role that commodity derivatives play in helping users hedge themselves against price risk. Besides, given the decentralised trading of agri-commodities in APMC mandis across India, the futures market helps in price discovery too. With national online spot trading in agri-commodities through platforms such as e-NAM taking time to realise its potential, it would be good to boost activity in agri derivatives market, instead of curbing it. Spot prices are mainly determined by demand and supply for the commodity; research has shown that it is not possible to establish an explicit link between volatility in future and spot prices — a point of view shared by the Abhijit Sen Committee (2008). However, a supplementary recommendation made by the panel is worth considering — to remove from the futures market those commodities where such a link is established. In order to take an informed decision, a study must be commissioned. The list of such commodities should be shared with stakeholders to remove trading-related uncertainty. That said, there are many shortcomings in the derivatives market for agri commodities that need to be addressed to make them accessible for farmers and other users. The contracts need to be simple in design and exchanges should conduct outreach programmes for farmer producer organisations, through which farmers can use these instruments. Currently, the exchanges are dominated by traders, with the participation of farmers and other users being low. Institutional participation should be encouraged.
Commodity derivatives are …………….
Read the following passage and answer the question
The artist is the creator of beautiful things. To reveal art and conceal the artist is art’s aim. The critic is he who can translate into another manner or a new material his impression of beautiful things. The highest as the lowest form of criticism is a mode of autobiography. Those who find ugly meanings in beautiful things are corrupt without being charming. This is a fault. Those who find beautiful meanings in beautiful things are the cultivated. For these there is hope. They are the elect to whom beautiful things mean only beauty. There is no such thing as a moral or an immoral book. Books are well written, or badly written. That is all. The nineteenth century dislike of realism is the rage of Caliban seeing his own face in a glass. The nineteenth century dislike of romanticism is the rage of Caliban not seeing his own face in a glass. The moral life of man forms part of the subject-matter of the artist, but the morality of art consists in the perfect use of an imperfect medium. No artist desires to prove anything. Even things that are true can be proved. No artist has ethical sympathies. An ethical sympathy in an artist is an unpardonable mannerism of style. No artist is ever morbid. The artist can express everything. Thought and language are to the artist instruments of an art. Vice and virtue are to the artist materials for an art. From the point of view of form, the type of all the arts is the art of the musician. From the point of view of feeling, the actor’s craft is the type. All art is at once surface and symbol. Those who go beneath the surface do so at their peril. Those who read the symbol do so at their peril. It is the spectator, and not life, that art really mirrors. Diversity of opinion about a work of art shows that the work is new, complex, and vital. When critics disagree, the artist is in accord with himself. We can forgive a man for making a useful thing as long as he does not admire it. The only excuse for making a useless thing is that one admires it intensely. All art is quite useless.
Artists …….
Read the following passage and answer the question
No one would have believed in the last years of the nineteenth century that this world was being watched keenly and closely by intelligences greater than man’s and yet as mortal as his own; that as men busied themselves about their various concerns they were scrutinised and studied, perhaps almost as narrowly as a man with a microscope might scrutinise the transient creatures that swarm and multiply in a drop of water. With infinite complacency men went to and fro over this globe about their little affairs, serene in their assurance of their empire over matter. It is possible that the infusoria under the microscope do the same. No one gave a thought to the older worlds of space as sources of human danger, or thought of them only to dismiss the idea of life upon them as impossible or improbable. It is curious to recall some of the mental habits of those departed days. At most terrestrial men fancied there might be other men upon Mars, perhaps inferior to themselves and ready to welcome a missionary enterprise. Yet across the gulf of space, minds that are to our minds as ours are to those of the beasts that perish, intellects vast and cool and unsympathetic, regarded this earth with envious eyes, and slowly and surely drew their plans against us. And early in the twentieth century came the great disillusionment. The planet Mars, I scarcely need remind the reader, revolves about the sun at a mean distance of 140,000,000 miles, and the light and heat it receives from the sun is barely half of that received by this world. It must be, if the nebular hypothesis has any truth, older than our world; and long before this earth ceased to be molten, life upon its surface must have begun its course. The fact that it is scarcely one seventh of the volume of the earth must have accelerated its cooling to the temperature at which life could begin. It has air and water and all that is necessary for the support of animated existence. Yet so vain is man, and so blinded by his vanity, that no writer, up to the very end of the nineteenth century, expressed any idea that intelligent life might have developed there far, or indeed at all, beyond its earthly level. Nor was it generally understood that since Mars is older than our earth, with scarcely a quarter of the superficial area and remoter from the sun, it necessarily follows that it is not only more distant from time’s beginning but nearer its end.
According to the above passage, the writers up to the end of the nineteenth century………………….the extra-terrestrial intelligence life.