Tuesday, 29 December 2015


Directions 1-10): Read the following passage carefully and answer the questions given below it. Certain words have been printed in bold to help you locate them while answering some of the questions. Goldman Sachs predicted that crude oil price would hit $200 and just as it appeared that alternative renewable energy had a chance of becoming an economically viable option, the international price of oil fell by over 70%. After hitting the all time high of $147 a barrel, a month ago, crude fell to less than $40 a barrel. What explains this sharp decline in the international price of oil? There has not been any major new discovery of a hitherto unknown source of oil or gas. The short answer is that the demand does not have to fall by a very sizeable quantity for the price of crude to respond as it did. In the short run, the price elasticity of demand for crude oil is very low. Conversely, in the short run, even a relatively big change in the price of oil does not immediately lower consumption. It takes months, or years, of high oil price to inculcate habits of energy conservation. World crude oil price had remained at over $60 a barrel for most of 2013- 2014 without making any major dent in demand. The long answer is more complex. The economic slowdown in the US, Europe and Asia along with dollar depreciation and commodity speculation have all had some role in the downward descent in the international price of oil. In recent years, the supply of oil has been rising but not enough to catch up with the rising demand, resulting in an almost vertical escalation in its price. The number of crude oil futures and options contracts have also increased manifold, which has led to significant speculation in the oil market. In comparison, the role of the Organisation of Petroleum Exporting Countries (OPEC) in fixing crude price has considerably weakened. OPEC is often accused of operating as a cartel restricting output, thus keeping prices artificially high. it did succeed in setting the price of crude during the 1970s and the first half of the 80s. But, with increased futures trading and contracts, the control of crude pricing has moved from OPEC to banks and markests that deal with futures trading and contracts. It is true that most oil exporting regions of the world have remained politically unstable, fuelling speculation over the price of crude. But there is little evidence that the geopolitical uncertainties in west Asia have improved to weaken the price of oil. Threatened by the downward slide of oil price, OPEC has, in fact, announced its decision to curtail output. However, most oil importers will have a sigh of relief as they find their oil import bills decline except for those who bought options to import oil at prices higher than market prices. Exporting nations, on the other hand, will see their economic prosperity slip. Relatively low price of crude is also bad news for investments in alternative renewable energy that cannot compete with cheaper and non-renewable sources of energy.

1. Why are oil importing countries relieved?
(1) Price of crude reached $147, not $200, as was predicted
(2) Discovery of oil reserves within their own territories
(3) Demand for crude has fallen sharply
(4) There is no need for them to invest huge amounts of money in alternative sources of energy
(5) None of the above
Ans: 5

2. Which of the following factors is responsible for rise in speculation in crude oil markets?
A. OPEC has not been able to restrict the oil output and control prices.
B. The supply of oil has been rising to match demand.
C. Existence of large number of oil futures and oil contracts.
(1) Only A
(2) Both A and B
(3) Only C
(4) All A, B, and c
(5) None of the above
Ans: 3

3. What does the phrase 'the price elasticity of demand for crude oil is very low' imply?
(1) When the price rises the demand for crude oil falls immediately
(2) A small change in demand will result in a sharp change in the price of crude
(3) Within a short span of time the price of crude oil has fluctuated sharply
(4) Speculation in oil does not have much of an impact on its price
(5) None of the above
Ans: 5

4. Which of the following is/are TRUE in the context of the passage?
A. The decline in oil prices has benefited all countries
B. Renewable energy sources are costlier than non-renewable ones
C. Lack of availability of alternative renewable energy resulted in rise in demand for crude
(1) Only B
(2) Both A and B
(3) Both B and C
(4) Only C
(5) None of the above
Ans: 1

5. What has the impact of the drop in oil prices been?
(1) Exploration for natural gas resources has risen
(2) The dollar has fallen sharply
(3) OPEC has decided to restrict its production of oil
(4) Economic depression in oil importing countries
(5) Drastic fall in demand for crude oil
Ans: 3

Directions (6-8): Choose the word which is most similar in meaning to the word printed in bold as used in the passage.

(1) Modify
(2) Construct
(3) Initiate
(4) Fix
(5) Instil
Ans: 5

(1) Incentive
(2) Supplying
(3) Stimulating
(4) Irritating
(5) Rescoring
Ans: 3

(1) Reduction
(1) Break
(3) Tear
(4) Breach
(5) Split
Ans: 1

Directions (9-10): Choose the word which is most opposite in meaning to the word printed in bold as used in the passage.

(1) Compatibly
(2) Similarly
(3) Likely
(4) Aligning
(5) Resembling
Ans: 5

(1) Powerful
(2) Nourish
(3) Intense
(4) Boost
(5) Energies
Ans: 4

Directions (1-15): Rearrange the given six sentences (A), (B), (C), (D), (E) and (F) in a proper sequence so as to form a meaningful paragraph and then answer the given question.
A. This success has been achieved despite the fact that agriculture has been the most volatile sector of the country's economy over the past four decades.
B. Such high levels of volatility are caused by the country's climate, which is punctuated by severe and prolonged periods of drought across the country.
C. Climate change is expected to exacerbate these drought patterns with reduced  average rainfall and increased variability.
D. Agriculture plays a pivotal role in the Australian economy-generating around $40 billion in export earnings each year.
E. Thus, the agriculture industry demands a sophisticated risk management framework to ensure the sustainability of productive farm businesses.
F. In addition to climatic changes, the Government has also failed to deliver a consistent and transparent framework for providing assistance.

11. Which of the following is the FIRST sentence after rearrangement?
(1) A
(2) C
(3) B
(4) D
(5) E
Ans: 4

12. Which of the following should be the SECOND sentence after rearrangement?
(1) C
(2) F
(3) A
(4) D
(5) E
Ans: 3

13. Which of the following should be the FOURTH sentence after rearrangement?
(1) E
(2) B
(3) C
(4) A
(5) F
Ans: 3

14. Which of the following should be the SIXTH (LAST) sentence after rearrangement?
(1) E
(2) B
(3) A
(4) D
(5) F
Ans: 1

15. Which of the following should be the FIFTH sentence after rearrangement?
(1) A
(2) D
(3) B
(4) F
(5) C
Ans: 4

Directions (16-20): In each sentence below, a group of words has been underlined. Below each four choices (1), (2), (3) and (4) are given. Pick out the one which can substitute the underlined group of words correctrectly, without changing the meaning of the sentence. If the sentence requires no correction, without changing the meaning of the sentence. If the sentence requires no correction no correction, given (5) as the answer.

16. The Election Commission announced that elections to the Assemblies will be held on May 10.
(1) should be held from
(2) will be held from
(3) would be held on
(4) are being held on
(5) None of these
Ans: 3

17. He was quite sure that none of them were aware of the truth.
(1) were aware from
(2) was aware of
(3) were beware of
(4) had aware of
(5) None of these
Ans: 2

18. Saurav Ganguly was too tired to stretch his innings further.
(1) too much tire to
(2) so tired to
(3) extremely tired about
(4) quite tiring to
(5) None of these
Ans: 5

19. Shocked of seeing corrupt persons partying in his house, the honest minister committed suicide.
(1) Shockingly seen
(2) Shocked at seeing
(3) Shocked by seeing
(4) Seeing as a shock
(5) None of these
Ans: 2

20. No sooner did he finish writing the article than his friend had arrived there.
(1) had arrived thereat
(2) had had his arrival there
(3) had been arrived there
(4) arrived there
(5) None of these
Ans: 4

Directions (21-25): In these questions, the sentence has a blank indicating that something has been omitted. Choose the word that best fits the meaning of the sentence as a whole.

21. Brinjals are cheap these days.
(1) dead
(2) dust
(3) dastardly
(4) dirt
(5) down
Ans: 4

22. He that he would come.
(1) requested
(2) said
(3) pleaded
(4) urged
(5) asked
Ans: 2

23. If you drink too much, it will your judgement.
(1) impede (2) impair
(3) impose (4) impel
(5) improve
Ans: 2

24. The Managing Director treated the employees to a lunch at an expensive hotel.
(1) precious
(2) thriving
(3) stupendous
(4) magnanimous
(5) sumptuous
Ans: 5

25. We need an unusually gifted person to solve this problem.
(1) sensitive
(2) sensible
(3) sensuous
(4) spurious
(5) sensual
Ans: 1

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