IBPS PO 22-Oct-2016


Read the following passage and answer the given questions.

Politics is local but most problems are international. That is the fundamental problem for national governments caught between the twin forces of globalisation and voters' anger. Tfie European refugee crisis, for example, seems to cry out for a continentwide solution. But the tide of migrants has been vast and national governments have been tempted to put up barriers first, and answer questions later. The latest example saw Sweden introduce checks on those travelling from Denmark, leading the turn country, in turn, to impose temporary controls on its southern border with Germany. Antiimmigration parties have been gaining in the polls, with the exception of the German Chancellor; mainstream politicians want to head off the challenge. In a way, this looks like the same mismatch that has plagued the euro a single currency without a unitary fiscal and political authority.

Many economists have advocated much greater integration of the euro zone in the wake of the bloc's crisis. The European banking system. would be stronger if there was a comprehensive depositinsurance scheme, the economy would be more balanced if there were fiscal transfers from rich to poor countries. But such plans are unpopular with voters in rich countries (who perceive them as handouts) Fand in poor countries (who worry about the implied loss of local control that reforms would require). All that the European Union's (EU) leaders have managed so far is to cobble together solutions (such as the Greek bailouts) at the last minute. Gone is the pledge of unity of the G20's summit in London in 2009, when leaders agreed on a coordinated stimulus in response to the financial crisis. Central banks are now heading in different directions, the Federal Reserve has just tightened monetary policy while the European Central Bank and the. Bank of Japan are committed to easing. Trade creates tighter links between countries, but global trade growth has been sluggish in recent years. The OECD thinks that trade grew by only 2% in volume in 2015. No longer is trade rising faster than Global GDP, as it was before the crisis. International agreements require compromise, which leaves politicians vulnerable to criticism from inflexible

components. Voters are already dissatisfied with their lot after years of sluggish gains (or declines) in living standards. When populist politicians suggest that voters' woes are all the fault of foreigners, they find a ready audience. Furthermore, economic woes can lead to much more aggressive foreign policy. In the developed world, demographic constraints ( a static or shrinking workforce) may limit the scope for the kind of rapid growth needed to reduce the debt burden and make voters happier. Boosting that sluggish growth rate through domestic reforms (breaking up producer cartels, making labour markets more flexible) is very hard because such reforms arouse strong opposition from those affected. The danger is that a vicious cycle sets in. Global problems are not tackled because governments fail to cooperate, voters get angrier and push their leaders into more nationalistic positions and conflict which poses a threat to all.

Question 1

What can be concluded from the example of the Greek bailout cited in the passage?

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Question 2

Which of the following is the central idea of the passage?

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Question 3

Which of the following has/have been the outcome(s) of economic woes?
(A) Uncompromising or antagonistic foreign policy.
(B) An allpowerful single financial regulator for Europe.
(C) Drop in trade volumes.

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Question 4

Which of the following is true in the context of the passage?

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Question 5

Which of the following can be said about the G20 summit in London in 2009?

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Question 6

Which of the following best explains the phrase 'The danger is that a vicious cycle sets in' in the context of the passage?

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Question 7

Which of the following is the author's view of the refugee crisis?

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Rearrange the given six sentences/ group of sentences (A), (B), (C), (D), (E) and (F) in a proper sequence so as to form a meaningful paragraph and then answer the given questions.
(A) It also launched a policy to ban private cars one workday a week based on the last digit of the number plate and has put restrictions on the number of vehicles from outside the city and raised
parking fees in urban areas.
(B) Beijing's annual bill for traffic congestion amounts to 70 billion Yuan ($11.3 billion), a recent study has found.
(C) However, such measures have done little in reducing congestion.
(D) The study further states that 80 percent of the total loss related to time wasted waiting, 10 percent to gas and 10 percent to environmental damage.
(E) In 2011, it introduced a lottery system to rein in the number of vehicles people buy.
(F) As a result, owing to these losses, the city started tacking the problem years ago.

Question 8

Which of the following should be the SECOND sentence after the rearrangement ?

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Question 9

Which of the following should be the FOURTH sentence after the rearrangement ?

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Question 10

Which of the following should be the SIXTH (LAST) sentence after the rearrangement ?

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