Practice the following Cloze test questions for bank exams
Direction: In the following passage, some of the words are missing. Find suitable words from the options given below these questions to make the paragraph meaningful.
The Union Cabinet has approved a series of changes in foreign direct investment norms as the government prepares to enter the last lap of its economic policy-setting phase ahead of the 2019 election. Key among these was the decision to ___A___ up to 49% overseas ownership, including by a foreign airline, in Air India. This comes just a little more than six months after the Cabinet Committee on Economic Affairs gave its nod for a strategic __B___ of the airline. The relaxation in ownership norms clears the decks for possible bidders such as the Singapore Airlines-Tata combine and Jet Airways — with its overseas equity and route partners — to make a more detailed commercial ___C___ of the investment opportunity the state-owned flag carrier presents. For the fiscally constrained government, the ___D___ could not have come sooner. With the Union Budget due soon and the government ___E___ short of its budgeted strategic disinvestment goal for the current financial year — as of end-November, only 28% of the targeted Rs. 15,000 crores had been realized — the hope must be for an ___F___ timetable for the stake sale. Still, the fulfillment of a necessary condition for a strategic sale does not automatically become sufficient grounds for successful privatization. Given the carrier’s accumulated debt of about Rs. 50,000 crores and the fact that the interest of potential investors is likely to be focused on Air India’s ___G___ long-haul international routes and its fleet of more than 40 wide-bodied aircraft, disinvestment will be neither easy nor guaranteed. At the very least, the government needs to set a distinct, ___H___ road map for the sale process. The other reform cleared by the Cabinet was the ___I___ decision to put 100% FDI in Single Brand Retail Trading under the ‘automatic’ route, accompanied by the long-sought relaxation of mandatory local sourcing norms. This had been a major issue with potential investors including Apple, which had repeatedly urged the government to take a more ___J___ view given the level of technological advancement incorporated in its products and the difficulty in finding local sources of supply at the requisite scale.
Select the most appropriate option to fill in the blank A A. give away, encash B. allow, permit C. strategize, authorize D. spurn, promote E. All of the above
Correct answer: B. allow, permit
Explanation:
The most appropriate choice to fill in the blank is “allow, permit”. Here’s why:
“Allow” and “permit” are both suitable words when referring to granting approval or making something permissible. In the context of FDI norms, these terms indicate the government’s decision to officially grant permission for up to 49% overseas ownership in Air India, including foreign airline participation.
Why the other options are not correct:
A. “Give away, encash” refers to giving something up or exchanging it for money, which doesn’t align with the context of permitting foreign ownership in Air India.
C. “Strategize, authorize” implies planning and granting permission, but it doesn’t fit as naturally as “allow” and “permit” in the context of foreign ownership approval.
D. “Spurn, promote” means to reject and encourage, which doesn’t fit the context of permitting foreign investment.
E. “All of the above” is incorrect because not all options are suitable.
Thus, “allow, permit” (option B) is the best choice, as it correctly conveys the approval of foreign ownership in Air India.
Select the most appropriate option to fill in the blank B A. seizure, expropriation B. occupancy, vacancy C. disinvestment, divestment D. destitution, denial E. All of these
Option: C
Correct answer: C. disinvestment, divestment
Explanation:
The most appropriate words to fill in the blank are “disinvestment” and “divestment”. Here’s why:
“Disinvestment” refers to the process of reducing or selling off an asset, typically in the context of government or corporate shares in a company. “Divestment” is often used interchangeably with “disinvestment,” particularly in the context of selling off business interests or shares. In this case, the Cabinet Committee’s nod for a strategic “disinvestment” of Air India fits well with the idea of reducing government stakes in the airline.
Why the other options are not correct:
A. “Seizure, expropriation” refers to the act of forcibly taking property, which doesn’t fit the voluntary sale or reduction of government stakes in a company.
B. “Occupancy, vacancy” refers to the presence or absence of someone in a place, which is not related to the context of selling or reducing government ownership in a company.
D. “Destitution, denial” refers to poverty or lack of resources, which is unrelated to the financial process of selling off shares or stakes.
E. “All of these” is incorrect because the other options are not suitable in the context of disinvestment or divestment.
Thus, “disinvestment, divestment” (option C) is the best choice, as it fits the context of reducing or selling off government stakes in Air India
Select the most appropriate option to fill in the blank C A. evaluation, assessment B. opinion, viewpoint C. viability, validity D. aspect, issue E. All of these
Correct answer: A. evaluation, assessment
Explanation:
Let’s reconsider the context for the word “evaluation” and “assessment.”
“Evaluation” and “assessment” both refer to the process of analyzing or judging the worth or value of something, which fits the context perfectly. The sentence talks about bidders making a more detailed analysis or review of the investment opportunity that Air India presents. These terms describe the process of analyzing the commercial potential of the airline, which is exactly what the sentence is referring to.
Why the other options are not correct:
B. “Opinion, viewpoint” suggests personal perspectives, which doesn’t align with the idea of a detailed, formal business analysis of the investment opportunity.
C. “Viability, validity” refers more to the practicality and soundness of the investment, but “evaluation” and “assessment” focus more on the process of analysis, which is a better fit in this context.
D. “Aspect, issue” are too general and do not specifically relate to the commercial analysis of an investment.
E. “All of these” is incorrect because not all options are appropriate for the detailed commercial review being discussed.
Thus, “evaluation, assessment” (option A) is indeed the best choice, as it aligns with the context of a formal review or analysis of an investment opportunity.
Select the most appropriate option to fill in the blank D A. impact, effect B. verdict, protocol C. decision, conclusion D. negotiation, dialogue E. All of these
Correct answer: A. impact, effect
Explanation:
The most appropriate words to fill in the blank are “impact” and “effect.” Here’s why:
“Impact” refers to the significant influence or change that the strategic disinvestment of Air India is expected to have on the government’s fiscal situation, and “effect” refers to the outcome or consequence of that impact. The sentence suggests that the disinvestment decision is very timely and needed for the government’s fiscal goals, so these terms fit well.
Why the other options are not correct:
B. “Verdict, protocol” implies a decision (verdict) and a procedure (protocol), which are not directly related to the financial outcome or results of the disinvestment.
C. “Decision, conclusion” refers to a decision and its result, but the focus here is on the financial impact and the urgency of the disinvestment process, which “impact” and “effect” better capture.
D. “Negotiation, dialogue” refers to discussions or talks, which doesn’t match the context of an immediate fiscal requirement tied to the disinvestment process.
E. “All of these” is incorrect because not all options are suitable in the context of the sentence’s focus on fiscal impact.
Thus, “impact, effect” (option A) is the best choice, as it accurately reflects the financial and timely consequences of the disinvestment.
Select the most appropriate option to fill in the blank E A. woefully, extremely B. sure, certain C. fair, definitely D. merely, slightly E. All of these
Correct answer: A. woefully, extremely
Explanation:
The most appropriate words to fill in the blank are “woefully” and “extremely.” Here’s why:
“Woefully” means in a manner that expresses strong disapproval or disappointment, and “extremely” emphasizes the degree to which the government is falling short of its disinvestment target. The context implies that the government is significantly behind in achieving its budgeted goal for strategic disinvestment, and these words effectively convey the seriousness of the situation.
Why the other options are not correct:
B. “Sure, certain” refers to confidence or assurance, which does not match the context of being far behind a target.
C. “Fair, definitely” also doesn’t convey the sense of being far behind or falling short of expectations as effectively as “woefully” and “extremely.”
D. “Merely, slightly” refers to something small or insignificant, which contradicts the idea of being significantly behind the target.
E. “All of these” is incorrect because not all options are appropriate in the context of falling short of a goal.
Thus, “woefully, extremely” (option A) is the best choice, as it accurately reflects the significant gap between the target and the achieved disinvestment.
Select the most appropriate option to fill in the blank F A. inexpedient, impolitic B. accelerated, increased C. sluggish, gradual D. lethargic, plodding E. All of these
Correct answer: B. accelerated, increased
Explanation:
The most appropriate words to fill in the blank are “accelerated” and “increased.” Here’s why:
“Accelerated” suggests that the timetable for the stake sale needs to be expedited or hastened, while “increased” indicates that the government hopes for a faster pace of action to meet its targets. The context is about the urgency of meeting the budgeted disinvestment goal, and these words convey the need to speed up the process.
Why the other options are not correct:
A. “Inexpedient, impolitic” refers to something unwise or ill-advised, which doesn’t fit with the context of a timetable needing to be speeded up.
C. “Sluggish, gradual” suggests slow and steady progress, which contradicts the need for an expedited timetable.
D. “Lethargic, plodding” also implies a slow, lethargic pace, which is the opposite of what the government needs in this context.
E. “All of these” is incorrect because the other options do not fit the urgency implied in the sentence.
Thus, “accelerated, increased” (option B) is the best choice, as it conveys the need for a faster, more urgent timetable for the stake sale.
Select the most appropriate option to fill in the blank G A. potentially, likely B. futile, cost-effective C. pragmatic, realistic D. lucrative, fruitful E. All of these
Correct answer: D. lucrative, fruitful
Explanation:
The most appropriate words to fill in the blank are “lucrative” and “fruitful.” Here’s why:
“Lucrative” refers to something that generates a significant amount of profit, and “fruitful” implies that the long-haul international routes and the fleet of wide-bodied aircraft will bring a positive and rewarding outcome. These words align with the context of Air India’s valuable assets being a major point of interest for potential investors.
Why the other options are not correct:
A. “Potentially, likely” refers to the possibility of success but does not focus on the profitability or rewarding nature of the routes and fleet.
B. “Futile, cost-effective” suggests something that is unproductive or pointless, which contradicts the idea of valuable assets attracting investors.
C. “Pragmatic, realistic” refers to being sensible and practical but doesn’t capture the idea of the investment opportunity being financially rewarding.
E. “All of these” is incorrect because the other options don’t fully fit the context of a financially rewarding investment opportunity.
Thus, “lucrative, fruitful” (option D) is the best choice, as it emphasizes the profitable and rewarding nature of the international routes and fleet that investors would be interested in.
Select the most appropriate option to fill in the blank H A. univocal, vague B. unequivocal, unambiguous C. fuzzy, absurd D. clear, short E. All of these
Correct answer: B. unequivocal, unambiguous
Explanation:
The most appropriate words to fill in the blank are “unequivocal” and “unambiguous.” Here’s why:
“Unequivocal” means clear and without any doubt, and “unambiguous” means not open to more than one interpretation. In the context of the government needing a distinct road map for the sale process, these words emphasize the need for a clear, straightforward, and easily understandable plan to guide the disinvestment process.
Why the other options are not correct:
A. “Univocal, vague” is contradictory, as “univocal” means having one meaning, while “vague” means unclear or imprecise.
C. “Fuzzy, absurd” refers to something unclear or nonsensical, which is the opposite of what the government needs in terms of a clear road map for the sale process.
D. “Clear, short” could work in a general sense, but “short” does not necessarily convey the thoroughness or precision needed for the disinvestment road map.
E. “All of these” is incorrect because not all options are suitable in the context of needing a clear and precise road map.
Thus, “unequivocal, unambiguous” (option B) is the best choice, as it conveys the need for a clear, direct, and easily understandable plan.
Select the most appropriate option to fill in the blank I A. eminent, significant B. essential, pivotal C. Critical, important D. crucial, vital E. All of these
Correct answer: E. All of these
Explanation:
All of the options (“eminent, significant”, “essential, pivotal”, “critical, important”, and “crucial, vital”) convey a sense of importance and necessity. Each pair fits the context of the decision regarding 100% FDI in Single Brand Retail Trading, which is a key reform. While some options may be slightly stronger in tone than others, all reflect the importance of the decision in attracting foreign investment.
Why all options can be correct:
• “Eminent, significant” implies that the decision is well-regarded and of considerable importance.
• “Essential, pivotal” emphasizes that the decision is fundamental and key to the process.
• “Critical, important” reflects the urgent and necessary nature of the reform.
• “Crucial, vital” highlights that the decision is of utmost importance and necessary for success.
Thus, “All of these” (option E) can be considered appropriate in this context, as all pairs convey the necessary importance of the decision.
Select the most appropriate option to fill in the blank J A. concentrated, focused B. genial, chipper C. benign, mild D. lively, brisk E. All of these
Correct answer: A. concentrated, focused
Explanation:
The most appropriate words to fill in the blank are “concentrated” and “focused.” Here’s why:
“Concentrated” and “focused” imply a strong, clear focus on a particular goal or objective. In this context, Apple is seeking a more focused or directed approach from the government to address local sourcing norms due to the advanced technology in its products. This aligns well with the idea of the government needing to be more deliberate and focused in its approach to these issues.
Why the other options are not correct:
B. “Genial, chipper” refers to being friendly and cheerful, which is not relevant to the context of policy and business decisions.
C. “Benign, mild” refers to something gentle or not harmful, which doesn’t align with the context of the government needing a more focused approach to investor concerns.
D. “Lively, brisk” refers to something energetic or fast-paced, which doesn’t capture the sense of the government needing to be more focused or specific in its approach.
E. “All of these” is incorrect because not all options fit the context of the government needing a focused approach.
Thus, “concentrated, focused” (option A) is the best choice, as it best matches the context of addressing investor concerns in a targeted way.
