IBPS Reading Comprehension Passages 2

Question 1

A passage states: 'Despite a surge in digital transactions, cash remains the preferred mode of payment in rural India, owing to limited internet penetration and financial literacy gaps.' What does the passage primarily highlight?

Accepted Answer

The coexistence of digital growth and cash reliance in rural areas

Answer

The passage contrasts digital transaction growth with persistent cash preference in rural areas due to infrastructure and literacy gaps.

Question 2

A banking passage reads: 'Non-performing assets (NPAs) erode a bank's profitability and restrict its ability to extend fresh credit, thereby stifling economic growth.' The word 'stifling' most nearly means:

Accepted Answer

Suppressing

Answer

'Stifling' means suppressing or suffocating, indicating that NPAs hinder economic expansion.

Question 3

Passage: 'The RBI's repo rate decisions influence borrowing costs across the economy. A rate cut typically encourages credit offtake, while a rate hike aims to contain inflationary pressures.' What can be inferred about a rate hike?

Accepted Answer

It is used as a tool to control inflation

Answer

The passage explicitly states that a rate hike aims to contain inflationary pressures, implying it is an anti-inflation tool.

Question 4

A passage says: 'Financial inclusion entails not merely opening bank accounts but ensuring their active usage through regular deposits, withdrawals, and access to credit.' Which title best suits this passage?

Accepted Answer

Beyond Account Opening: The True Meaning of Financial Inclusion

Answer

The passage argues that financial inclusion goes beyond account creation to meaningful, active usage of banking services.

Question 5

Passage: 'Wilful defaulters—borrowers who can repay but choose not to—pose a grave challenge to the banking system, as recovery through legal channels is protracted and uncertain.' What does 'protracted' mean?

Accepted Answer

Drawn out over a long period

Answer

'Protracted' means prolonged or extended over a long duration, describing the slow nature of legal recovery.

IBPS - Institute of Banking Personnel Selection Practice Test

IBPS - Institute of Banking Personnel Selection Practice Test

IBPS Reading Comprehension Passages 2