Passage – 3
The world has come around to the view that democracy is essential for full human development. And only education and skill development can make this possible. Democracy cannot be sustained unless the electorate is well informed, chooses its leadership wisely, and this leadership is intellectually empowered by a multi-dimensional intelligence. The world view of economic development has completely changed: it is no longer believed to be driven by human labor, as Karl Marx said, or by capital, as Alfred Marshall stated, but is knowledge-driven. For application of knowledge, innovations are required, and for more original research, we need
many more young minds at the frontier. Knowledge is gender neutral, and hence the 21st century offers a great opportunity to level the gender inequity of the last thousand years in India.
The youth require a mental faculty endowed with multi-dimensional intelligence. It is not adequate to foster cognitive intelligence alone — as is being done in India’s educational campuses today — but to also develop the other dimensions of intelligence: emotional, social, moral, spiritual, environmental, and innovational. India’s vast youth population is its demographic potential dividend, but only if equipped and enabled with this
seven-dimensional intelligence. The nation must, therefore, structure a national education policy for the youth so that the seven dimensions of intelligence can be manifested in every young man and woman. Only then will the demographic dividend not be wasted. These seven dimensions constitute the ability of a person to live a productive life and for the national good. Hence, a policy for India’s youth has to be structured within the implied parameters of these dimensions.
The first parameter of such a policy is ability empowerment — the development of the seven types of intelligence. The second is a collective
mindset about the legacy and future of the nation, which means knowing the correct de-falsified history of India. The third is the commitment to a social contract of rights and obligations such as a fundamental right to quality primary and secondary education, right to work, an obligation to compete for most positions of employment on merit, practice gender equality and place national interests above selfish interests. A national education policy is, therefore, a framework for the comprehensive growth of the nation’s young population, to enable them to be positioned in life for personal advancement as well as contribute to national greatness. India, however, lacks
today a properly structured policy for development of its youth. As a result, many young people are led astray by drugs and crime.
11. According to the passage, democracy cannot be sustained in a country without:
- a) Economic Development
- b) Education and Skill Development
c) Rural and Urban Development d) Technological Development Answer: b)
Explanation: The passage clearly mentions that the democracy cannot be
sustained in a country without education and skill development.
12. An empowered intellectual leadership involve:
- a) Logical Intelligence
- b) Interpersonal Intelligence
c) Multi Dimensional Intelligence d) Intra-personal Intelligence Answer: c)
Explanation: It is clearly stated in the passage that in a democratic country the leadership should be intellectually empowered by a multi-dimensional intelligence.
13. According to the passage, in a country economic development is driven by:
- a) Human Labor
- b) Capital
c) Infrastructure
d) Knowledge and Innovations Answer: d)
Explanation: The first paragraph clearly states that the world view of economic development has completely changed: it is no longer believed to be driven by human labor, as Karl Marx said, or by capital, as Alfred Marshall stated, but is knowledge-driven.
14. The youth of India is being taught to learn which of these dimensions of intelligence?
A. Emotional and Social B. Social and Moral C. Spiritual D. Environmental and Innovational
- a) Only A and B
- b) Only B and C
c) OnlyCandD
d) All of the above Answer: d)
Explanation: It has been clearly mentioned in the second paragraph that India’s educational campuses today aims to develop the other dimensions of
intelligence in youth which are: emotional, social, moral, spiritual, environmental, and innovational.
15. The 21st century education system believes in imparting knowledge:
- a) In a gender biased way.
- b) In a gender neutral manner.
c) On the basis of sex discrimination.
d) On the preferences based on genders.
Answer: b)
Explanation: It has been clearly mentioned in the last line of the first paragraph that knowledge is gender neutral, and hence the 21st century
offers a great opportunity to level the gender inequity of the last thousand years in India.
Passage – 4
In a big step towards resolution of bad loans, Indian banks, Reserve Bank of India and the union finance ministry are discussing setting up two special funds to resurrect troubled investments through equity infusion or more debt funds. The two funds proposed are Stressed Assets Equity Fund and Stressed Assets Lending Fund. “Creation of separate funds for resolution of stressed assets is being worked out. Indian Banks’ Association (IBA) is finalizing the road map,” adding
the corpus of these two funds will be fluid and will take case-specific action.
According to RBI data, the stressed assets ratio for the banking sector, which includes gross non-performing assets (NPAs), increased to 14.5% at the end of December 2015 as against 9.8% at the end of March 2012. State-run banks have the highest share in stressed loans. Their gross NPAs or bad loans alone rose from Rs 2.67 lakh crore in March 2015 to Rs 3.61 lakh crore in December. A senior official with IBA said that the stressed assets equity fund (SAEF) will invest in equity of stressed borrower bringing equity to burdened projects. “It may take
controlling stake either directly or through strategic debt restructuring scheme (SDR),” he said.
The other fund named stressed assets lending fund (SALF) will provide last mile funding or working capital funding to assets in trouble because of funding constraints. “An oversight committee will be formed to look into cases where these funds will invest. Discussions are on to work out the modalities,” said the above quoted government official. Earlier this month, RBI had come out with a scheme for sustainable structuring of stressed assets, also termed as S4A, to strengthen the lenders’ ability to deal with stressed
assets and provide an avenue for reworking the financial structure of entities facing genuine difficulties. “The S4A envisages determination of the sustainable debt level for a stressed borrower and bifurcation of the outstanding debt into sustainable debt and equity/quasi-equity instruments which are expected to provide upside to the lenders when the borrower turns around,” the RBI had noted in a statement.
16. Which of the following funds is build to resurrect troubled investments through debt funds?
a) SAEF
b) SEAF c) SALF
d) SLAF Answer: c)
Explanation: The first paragraph clearly indicates that Stressed Assets Lending Fund (SALF) will help to resurrect troubled investments through debt funds.
17. What are Non-Performing Assets (NPAs)?
a) Assets of the banks which bring in cash.
b) Assets of the banks which don’t bring any return.
c) Movable assets of the bank.
d) Immovable assets of the bank. Answer: b)
Explanation: All those assets which don’t generate regular income are known as Non-Performing Assets (NPAs).
18. Which of the following statement is incorrect according to the passage?
a) Gross NPAs rose from Rs 2.67 lakh crore in March 2015 to Rs 3.61 lakh crore in December 2015.
b) Gross non-performing assets (NPAs) were 14.5% in December 2015.
c) Gross non-performing assets (NPAs) were 9.8% in March 2012.
d) Gross non-performing assets (NPAs) were 14.5% in March 2012.
Answer: d)
Explanation: The second paragraph clearly states that according to RBI data, the stressed assets ratio for the banking sector, which includes gross non-performing assets (NPAs), increased to 14.5% at the end of December 2015 as against 9.8% at the end of March 2012. Hence, option d) is incorrect.
19. Stressed Assets Lending Fund (SALF) will provide:
- a) Equity Capital Fund
- b) Fixed Capital Fund
c) Working Capital Fund
d) Long-term Capital Fund Answer: c)
Explanation: The third paragraph clearly states that Stressed Assets Lending Fund (SALF) will provide last mile funding or working capital funding to assets in trouble because of funding constraints.
20. The objective of the scheme S4A is:
a) To strengthen the lenders’ ability to deal with stressed assets.
b) To provide an avenue for reworking the financial structure of entities facing genuine difficulties.
c) Sustainable structuring of stressed assets
d) All of the above Answer: d)
Explanation: The second paragraph clearly states that RBI had come out with a scheme for sustainable structuring of stressed assets, also termed as S4A, to strengthen the lenders’ ability to deal with stressed assets and provide an avenue for reworking the financial structure of entities facing genuine difficulties. Also,
the S4A envisages determination of the sustainable debt level for a stressed borrower.