Sbi Po Preliminary Exam Template With Answers Page 13
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25SBI PO Preliminary Exam Model Paper 9
70.Which of the following would be the final arrangement?
a) growth 02 next 14 problem 41 purchase 57 82 trend
b) growth next problem purchase trend 02 14 41 57 82
c) growth 02 next 14 problem 41 purchase 57 trend 82
d) growth 82 next 57 purchase 41 problem 14 next 02
e) None of these
English Language
Directions (Q. 71-77) Read the passage carefully and answer the questions
given below it. Certain words/phrases are given in bold to help you locate
them while answering some of the questions.
India’s external debt profile appears similar to that of other major market
economies. But its short term external debt stock is now higher than countries
such as Brazil and Russia (in terms of percentage of GDP), according to Taimur
Baig and Kaushik Datta, economists at Deutsche Bank. India’s share of short
term debt relative to the stock of total external debt is also higher than other
emerging market economies, with the exception of Turkey, they say.
Though short term debt was contained in FY 14, it was largely due t o a
slowdown in imports and may again rise once there is a rebound in growth and
imports pick up. Some economists point out that since GDP is expressed in
dollar terms, a weak rupee translates into a lower GDP number and hence, a
lower ratio could be misleading.
However, the composition of long term debt which is reckoned to be
durable and ‘safe’ is also worrisome. While the share of almost risk free
sovereign, multilateral and bilateral credit has reduced significantly over the
years, it is private corporate sector debt and ‘retail’ component in terms of NRI
deposits that has swelled over the years. Proceedsfrom the FCNR (B) swap and
overseas borrowing schemes were, in fact, t he main contributors to the $31.2
bn increase in external debt in FY 14, which were facilitated by the Reserve
Bank to stabilise the Indian currency.
“NRI deposits do not pose material risks (as they are generally rolled
over). But the increase in the share of external commercial borrowings exposes
the domestic corporate sector significantly t o external shocks, including
adverse exchange rate movements,” says Samiran Chakrabarty, Chief India
Economist, Standard Ch artered Bank. Every year about $20 bn is scheduled for
Page 13
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