[Download PDF] SBI Associate PO 2010 Paper with Solutions

Instructions

In each question below is given a statement followed by three assumption (A), (B) and (C) An assumption is something supposed or taken for granted You have to consider the statement and the following assumptions and decide which of the assumptions is implicit in the statement.

Question 181

Statement:Police authority cordoned off the entire locality for the entire day and stopped vehicular movement for the visit of a top functionary of the government in view the threat perception and advised all the residents in the area to limit their movement outside their dwellings
Which of the following assumption (s) is/are implicit in the above statement ?
(A)Police personnel may not be able to control the vehicular movement in the locality and may seek help from the armed forces
(B)People living in the locality may move out of their houses for the day to avoid inconvenient
(C)The Government functionary may request the police authority to lift the ban on movement of residents of the locality outside their dwellings

Video Solution

Solution

Implicit statement is statement which can be indirectly inferred from the given statement.
Of all the statements given, none of them appear to be inferred. They are independent statements with no indirect relation to the question statement.
Hence, none of these or option A is the answer.

Question 182

Statement:The apex body controlling universities in the country has decided to revise the syllabus of all the technical courses to make them focused towards the present needs of the industry thereby making the technical graduates more employable than they are at present
Which of the following assumption(s) is/are implicit in the above statement ?
(A)Technical colleges affiliated to different universities may not welcome the apex body’s decision and may continue with the same syllabus as at present
(B)The industry may welcome the decision for the apex body and scale up their hiring from these colleges
(C)The Government may not allow the apex body to implement its decision in all the colleges as it may lead to chaos

Video Solution

Solution

Revising the syllabus to increase its focus on making it more application oriented will make it conducive to the needs of industry.
This decision would naturally be welcomed by industry and it would subsquently lead to more hiring by them.
Option C is correct answer.

Question 183

Statement:Government has urged all the citizens to use electronic media for carrying out their daily activities whenever possible instead of using paper as the cutting down of a large number of trees causing severe damage to the ecosystem
Which of the following assumption(s) is/are implicit in the above statement ?
(A)Most people may be capable of using electronic media to carry out various routines
(B)Most people may have access to electronic media for carrying out their daily routine activities
(C)People at large may reject the Government’s appeal and continue using paper as before

Video Solution

Solution

Goverment would suggest something only if majority of the people would be able to carry out suggestion.
We can conclude from the government's suggestion that many of the people are capable of using electronic media as well as have acerss to the same.
Hence, the correct option is C.

Question 184

Statement:The Government has decided to auction construction of highways to private entities in several blocks across the country on build operate transfer basis
Which of the following assumption(s) is/are implicit in the above statement ?
(A)An adequate number of private entities may not respond to the Government auction notification
(B)Many private entities in the country are capable of constructing highways within reasonable time
(C)The Government’s proposal of build-operate-transfer may financially benefit the private entities

Video Solution

Solution

Auctioning of the projects to private entities means that goverment is sure that these entities will be able to complete them within reasonable timeframe.
This is implicit inference.
Option C is correct.

Question 185

Statement:The airlines have requested all their bona fide passengers to check the status of flight operations before leaving their homes as heavy fog is causing immense problems to normal flight operations
Which of the following assumption(s) is/are implicit in the above statement ?
(A)The majority of the air passengers may check the flight status after starting their journey to the airport
(B)The Government may take serious objection to the notice issued by the airline company
(C)Majority of the passengers may cancel their tickets and postpone their journey till the situation becomes normal

Video Solution

Solution

Many of the passsenger may check the status after leaving the homes and would waste time if the flight stands cancelled due to heavy fog. This is implicit conclusion from the Hence, the airlines have requested them to check the flight status before leaving their home.
Hence, the correct option is B.

Instructions

Below is given a passage followed by several possible inferences which can be drawn from the facts stated in the passage You have to examine each inference separately in the context of the passage and decide upon its degree of truth or falsity.
Mark answer (a)if the inference is ‘definitely true’ i,e it properly follows from the statement of facts given
Mark answer (b)if the inference is ‘probably true’ though not ‘definitely true’ in the light of the facts given
Mark answer (c)if the ‘data are inadequate i.e from the facts given you cannot say whether the inference is likely to be true or false
Mark answer (d)if the inference is ‘probably false’ though not ‘definitely false’ in the light of the facts given
Mark answer (e)if the inference is ‘probably false’ i.e it cannot possibly be drawn from the facts given or it contradicts the given facts.

The deterioration in the overall asset quality of banks gross Non-performing Assets (NPAs) are reportedly 27% higher at the end of December 2009 than at the end of December 2008-is not surprising Any slowdown in growth is bound to trigger a rise in NPAs as more and more companies default on loan repayments The effect would be pronounced when the slowdown coincides with a severe global recession But for the restructuring of loans permitted by the Central Bank on fairly generous terms NPAs would have been still higher Prudent banks that took care while sanctioning loans and then monitored the post sanction disbursement diligently should be able to weather the crisis But it is one thing to have NPAs rise because of a cyclical downturn it is quite another to have NPAs rise because of policy errors that are entirely within the realm of policy makers And this is what we need to guard against Excessively low interest rates skew the risk reward equation by making projects that are actually not viable appear viable till interest rates reverse and the same projects cease to be viable It is now well established that long periods of unduly low interest rates encourage banks to take more risks A low interest rate regime driven by an easy money policy rather than macroeconomic fundamentals leads to excessive expansion of credit It incentivizes banks to take on more risk in search of higher returns and to misprice risk.

Question 186

Higher NPAs indicate shortcomings in disbursement and follow up of credit given by banks.

Video Solution

Solution

Author implicitly indicates that higher NPAs indicate that the banks haven't been able to carry out loan disembursement in a proper manner. It also means that follow up of the same had shortcomings. This is strongly indicated by statements of facts given.
Option A is correct.

Question 187

The Central Bank always allows banks to restructure their loans in the event of rise in NPAs

Video Solution

Solution

The author mentions that the negative effect of NPAs would have been more severe but for the restructuring of loans allowed by central banks in case of NPAs.
Hence, there is a strong probability that central bank may allow banks to restructure their loans although we cannot say this defnitely.
Hence, option B is correct.

Question 188

Lower interest rate on credit reduces the capacity to absorb various unaccounted risk factors.

Video Solution

Solution

It has been observed that lower interest rates has led to increased NPAs.
It emboldens the banks to give loans and ignore various risk factor.
Statement corresponding to option A is definitely true as it clearly follows from the factors stated in the paragraph.

Question 189

Low interest rate on credit reduces the capacity to absorb various unaccounted risk factors.

Video Solution

Question 190

Banks NPAs occur only due to economic factors.

Video Solution

Solution

There are many non economic policy factors responsible in addition to economic factor for NPAs to occur.
Hence, the inference is probably false one.
Option D is correct option.

CAT Content

SBI Associate PO 2010

SBI Associate PO 2010

Higher NPAs indicate shortcomings in disbursement and follow up of credit given by banks.

The Central Bank always allows banks to restructure their loans in the event of rise in NPAs

Lower interest rate on credit reduces the capacity to absorb various unaccounted risk factors.

Low interest rate on credit reduces the capacity to absorb various unaccounted risk factors.

Banks NPAs occur only due to economic factors.

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