Ibps Po Pre Exam Template With Answers (Page 13 of 27) in pdf

IBPS PO Pre (2016) - Model Paper 1

74. How, according to the author, has India progressed despite a mediocre higher education system?

1) By borrowing ideas as well as technology from the West

2) By convincing the world that it is more knowledgeable than it actually is

3) On the basis of its fairly competent graduates and a large number of educated population

4) Because of its sound and progressive economic policies

5) On the basis of the goodwill accumulated by it over the years

75. Which of the following is possibly the most appropriate title for the passage?

1) Literacy in India

2) State of Higher Education in India

3) Top Universities of India

4) Educational Institutes in India

5) Comparative Study of Higher Education in India and China

Directions (Q. 76-80): Read the following passage carefully and answer the questions given below it. Banking sector

reforms in India were introduced in order to improve efficiency in the process of financial intermediation. It was

expected that banks would take advantage of the changing operational environment and improve their performance.

Towards this end, the Reserve Bank of India initiated a host of measures for the creation of a competitive

environment. Deregulation of interest rates on both deposit and lending sides imparted freedom to banks to

appropriate price their products and services. To compete effectively with non-banking entities, banks were permitted

to undertake newer activities like investment banking, securities trading and insurance business. This was facilitated

through amendments in the relevant acts which permitted PSBs to raise equity from the market up to threshold limit

and also enabling the entry of new private and foreign banks. This changing face of banking led to an erosion of

margins on traditional banking business, promoting banks to search for newer activities to augment their free incomes.

At the same time, banks also needed to devote focused attention to operational efficiency in order to contain their

transaction costs. Simultaneously with the deregulation measures prudential norms were instituted to strengthen the

safety and soundness of the banking system. Recent internal empirical research found that over the period 1992-2003,

there has been a discernible improvement in the efficiency of Indian banks. The increasing trend in efficiency has

been fairly uniform, irrespective of the ownership pattern. The rate of such improvement has, however, not been

sufficiently high. The analysis also reveals that PSBs and private sector banks in India did not differe significantly in

terms of their efficiency measures. Foreign banks, on the other hand, recorded higher efficiency as compared with

their Indian counterparts.

76. Prudential norms were initiated in the banking sector with a view to

1) Increase operational efficiency

2) Contain the non-performing assets

3) Strengthen the soundness of banking system

4) Improve the custome service

5) None of these

77. Banking sector reforms in India were introduced for the purpose of

1) Giving more and more employment opportunities to the educated unemployed

2) Taking care of the downtrodden masses

3) Increasing efficiency in the banking activities

4) Giving better return to the Central Government

5) None of these

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