Free IBPS Reading Comprehension Passages Questions and Answers — Questions and Answers
Question 1: Read the passage carefully and answer the question that follows. The Indian banking sector has been grappling with the persistent issue of Non-Performing Assets (NPAs) for over a decade. An NPA is a loan or advance for which the principal or interest payment remained overdue for a period of 90 days. The problem was exacerbated by a period of aggressive lending in the mid-2000s, followed by an economic slowdown that hampered the ability of many corporations to repay their debts. The accumulation of these bad loans erodes a bank's profitability and capital base, restricting its ability to extend further credit and thereby stifling economic growth. To address this, the government and the Reserve Bank of India (RBI) have implemented several measures, including the Insolvency and Bankruptcy Code (IBC) and the establishment of 'bad banks' or Asset Reconstruction Companies (ARCs). While these initiatives have shown some success in resolution and recovery, the sheer volume of legacy NPAs means that the path to a completely healthy banking system is still an arduous one, requiring sustained effort. What is the primary purpose of the passage?
- To argue that 'bad banks' are the only solution to the NPA crisis.
- To provide an overview of the NPA problem in India and the measures to tackle it. (Correct answer)
- To criticize the aggressive lending practices of Indian banks in the mid-2000s.
- To explain the success of the Insolvency and Bankruptcy Code (IBC) in detail.
Correct answer: To provide an overview of the NPA problem in India and the measures to tackle it.
The passage defines NPAs, explains their causes (aggressive lending, economic slowdown), details their consequences (eroded profitability, stifled growth), and discusses remedial measures (IBC, ARCs). This comprehensive overview makes option B the most accurate description of the passage's primary purpose.
Question 2: Read the passage carefully and answer the question that follows. The Indian banking sector has been grappling with the persistent issue of Non-Performing Assets (NPAs) for over a decade. An NPA is a loan or advance for which the principal or interest payment remained overdue for a period of 90 days. The problem was exacerbated by a period of aggressive lending in the mid-2000s, followed by an economic slowdown that hampered the ability of many corporations to repay their debts. The accumulation of these bad loans erodes a bank's profitability and capital base, restricting its ability to extend further credit and thereby stifling economic growth. To address this, the government and the Reserve Bank of India (RBI) have implemented several measures, including the Insolvency and Bankruptcy Code (IBC) and the establishment of 'bad banks' or Asset Reconstruction Companies (ARCs). While these initiatives have shown some success in resolution and recovery, the sheer volume of legacy NPAs means that the path to a completely healthy banking system is still an arduous one, requiring sustained effort. As used in the passage, the word 'exacerbated' most nearly means:
- Initiated
- Investigated
- Worsened (Correct answer)
- Solved
Correct answer: Worsened
The passage states the problem of NPAs was 'exacerbated by a period of aggressive lending... followed by an economic slowdown.' The context implies that the economic slowdown made the existing problem of bad loans more severe or intense. Therefore, 'worsened' is the closest meaning.
Question 3: Read the passage carefully and answer the question that follows. Climate change poses a significant threat to India's agricultural sector, which is the backbone of the rural economy and employs nearly half of the country's workforce. The increasing frequency of extreme weather events, such as droughts and floods, directly impacts crop yields. Unpredictable monsoon patterns disrupt traditional sowing cycles, leading to crop failures. Furthermore, rising temperatures contribute to increased pest infestations, diminishing agricultural output. Small and marginal farmers are particularly vulnerable as they often lack the resources and access to technology needed to adapt to these changes. Mitigation strategies, including the development of drought-resistant crop varieties, promotion of water-conservation techniques like micro-irrigation, and improved weather forecasting systems, are crucial for building a resilient agricultural system. Which of the following can be inferred about small and marginal farmers from the passage?
- They face a disproportionately high risk from the effects of climate change. (Correct answer)
- They are the primary cause of climate change due to outdated farming techniques.
- They have largely adopted modern, drought-resistant crop varieties.
- They are better equipped to handle climate change than large-scale commercial farmers.
Correct answer: They face a disproportionately high risk from the effects of climate change.
The passage explicitly states that small and marginal farmers are 'particularly vulnerable as they often lack the resources and access to technology needed to adapt.' This directly supports the inference that they bear a higher, or disproportionate, risk compared to others who might possess those resources.
Question 4: Read the passage carefully and answer the question that follows. Climate change poses a significant threat to India's agricultural sector, which is the backbone of the rural economy and employs nearly half of the country's workforce. The increasing frequency of extreme weather events, such as droughts and floods, directly impacts crop yields. Unpredictable monsoon patterns disrupt traditional sowing cycles, leading to crop failures. Furthermore, rising temperatures contribute to increased pest infestations, diminishing agricultural output. Small and marginal farmers are particularly vulnerable as they often lack the resources and access to technology needed to adapt to these changes. Mitigation strategies, including the development of drought-resistant crop varieties, promotion of water-conservation techniques like micro-irrigation, and improved weather forecasting systems, are crucial for building a resilient agricultural system. According to the passage, which of the following is NOT a suggested strategy to combat the effects of climate change on agriculture?
- Developing crops that can survive with less water.
- Promoting techniques for efficient water use.
- Improving the systems for predicting weather.
- Increasing the use of chemical pesticides to control infestations. (Correct answer)
Correct answer: Increasing the use of chemical pesticides to control infestations.
The passage lists 'development of drought-resistant crop varieties' (A), 'promotion of water-conservation techniques' (B), and 'improved weather forecasting systems' (C) as mitigation strategies. While it mentions increased pest infestation as a problem, it does not suggest increasing chemical pesticide use as a solution.
Question 5: Read the passage carefully and answer the question that follows. The landscape of financial transactions in India has been radically transformed by the meteoric rise of digital payment systems. The 2016 demonetization policy acted as a significant catalyst, compelling a large segment of the population to adopt digital alternatives. The Unified Payments Interface (UPI) has been the cornerstone of this revolution, offering a seamless, real-time platform that has seen exponential growth. This shift has enhanced convenience for consumers and brought greater transparency to the economy, facilitating financial inclusion. However, challenges remain. Digital literacy is not uniform across the country, and concerns about cybersecurity and data privacy persist. Ensuring robust infrastructure, especially in rural areas, and addressing the digital divide are crucial next steps for sustaining the momentum. What is the central argument of the passage regarding India's digital payment systems?
- The UPI system has failed to ensure data privacy for its users.
- The growth of digital payments is solely a result of the 2016 demonetization policy.
- Digital payments have grown significantly and brought benefits, but challenges still need to be addressed. (Correct answer)
- Digital literacy is the only barrier to the complete adoption of digital payments in rural India.
Correct answer: Digital payments have grown significantly and brought benefits, but challenges still need to be addressed.
The passage presents a balanced view. It highlights the 'meteoric rise' and benefits like 'enhanced convenience' and 'financial inclusion,' but then explicitly states, 'However, challenges remain,' listing digital literacy, cybersecurity, and infrastructure. This perspective of success coupled with remaining challenges is best summarized by option C.
Question 6: Read the passage carefully and answer the question that follows. The landscape of financial transactions in India has been radically transformed by the meteoric rise of digital payment systems. The 2016 demonetization policy acted as a significant catalyst, compelling a large segment of the population to adopt digital alternatives. The Unified Payments Interface (UPI) has been the cornerstone of this revolution, offering a seamless, real-time platform that has seen exponential growth. This shift has enhanced convenience for consumers and brought greater transparency to the economy, facilitating financial inclusion. However, challenges remain. Digital literacy is not uniform across the country, and concerns about cybersecurity and data privacy persist. Ensuring robust infrastructure, especially in rural areas, and addressing the digital divide are crucial next steps for sustaining the momentum. According to the passage, the 2016 demonetization policy's role in the adoption of digital payments can be best described as a:
- Final solution
- Major catalyst (Correct answer)
- Primary obstacle
- Coincidence
Correct answer: Major catalyst
The passage explicitly states that 'the 2016 demonetization policy acted as a significant catalyst, compelling a large segment of the population to adopt digital alternatives.' A catalyst is an event or substance that precipitates a change, which perfectly describes the role attributed to the policy in the text.
Free IBPS Reading Comprehension Passages Questions and Answers
Read the passage carefully and answer the question that follows.
The Indian banking sector has been grappling with the persistent issue of Non-Performing Assets (NPAs) for over a decade.
An NPA is a loan or advance for which the principal or interest payment remained overdue for a period of 90 days.
The problem was exacerbated by a period of aggressive lending in the mid-2000s, followed by an economic slowdown that hampered the ability of many corporations to repay their debts.
The accumulation of these bad loans erodes a bank's profitability and capital base, restricting its ability to extend further credit and thereby stifling economic growth.
To address this, the government and the Reserve Bank of India (RBI) have implemented several measures, including the Insolvency and Bankruptcy Code (IBC) and the establishment of 'bad banks' or Asset Reconstruction Companies (ARCs).
While these initiatives have shown some success in resolution and recovery, the sheer volume of legacy NPAs means that the path to a completely healthy banking system is still an arduous one, requiring sustained effort.
What is the primary purpose of the passage?