Comprehension for SBI PO, NIACL

Directions (Q. 1-10): Read the following passage carefully and answer the given questions.

On 8 November 2016, the government demonetised currency notes of two denominations: Rs.500 and Rs.1000. Together, currency notes of these denominations had accounted for more than 85 per cent of the total value of banknotes in circulation. Demonetisation caused a cashcrunch and forced the government to push for electronics payments and transfers. Though the main pitch of demonetisation was towards curbing financing of terrorism and eliminating black money, a major shift towards a cashless economy emerged as a necessity. In fact, in his 'Mann Ki Baat' address to the nation on 27 November 2016, Prime Minister declared, 'Our dream is that there should be a cashless society. This is correct that 100 per cent cashless society is never possible. But we can make a start with a less-cash society, and then cashless society will not be a far-off destination.'
Although the narrative of demonetisation has changed, the government has been sowing the seeds of a cashless economy. First, in 2014, the government launched the Jan Dhan Yojana in 2014; as on 20 April 2016, nearly 220 million accounts had been opened. In February 2016, the Government of India approved the guidelines for promoting payments through cards and digital means. A massive change from the informal cash-carry system to a formal financing payment system will give an impetus to the payments and settlement system in India. The best way to reduce corruption and black money in the economy is to move from an economy dependent predominantly on cash to electronic transfers, which needs universal banking access and facility.
A cashless economy runs on credit or debit cards, electronic funds transfer, or online shopping instead of cash. The idea of a cashless economy is actually a revolution from the fiat money to digital money, generally adopted with the aim of curbing the flow of black money and increasing transparency of the flow of cash. All transactions are made with cards or through digital means whether one has to pay bills, buy fruits, or take a bus or taxi ride. Just like traditional pocket wallets, e-wallets do not require cash in its physical form; these are linked to one's bank account and payments are directly deducted from it. Internet banking and the recently launched Unified Payment Interface (UPI) are other products of technology
that are directed towards going cashless, but e-wallets are the most prevalent and widely used. In fact, it is being opined that in the near future even credit and debit cards will becomeredundant as all transactions would be made possible through a smart hone, and a mobile phone code would be sufficient to withdraw cash at ATMs, and there would be no need for a card.
The Indian economy is one of the fastest-growing economies in the world, but it suffers from issues like black money, corruption, terrorism, illicit wealth, etc. To break the grip of corruption and black money, there have always been various ways like auditing and enforcement agencies, but the idea of cashless economy is more appealing, as most economic transactions would be part of the formal system and easy to track. In India, few use non-cash payment methods; only 10-15 per cent of the population is estimated to have ever used any kind of non-cash payment instrument, compared to 40 per cent of people in countries like Brazil and China. Meanwhile, as of 2014, India's ratio of currency in circulation outside of banks to GDP was 11.1 per cent, higher than other emerging economies like Russia, Mexico, and Brazil. This indicates ample scope for strengthening the base of the untapped non-cash user market.

1. What was/were the main reason(s) for making the high-denomination currency notes illegal tender?
a) To make India a cashless economy
b) To curb financing of terrorism and eliminate black money.
c) To curb corruption and help the poor
d) Only a) and b)
e) All a), a) and c)

2. What is the best way to reduce corruption and black money from the economy?
(A) Laying more emphasis on electronic transfer of money than making payment in cash
(B) Making provisions for stringent punishment for repeat offenders
(C) Making the economy fully cashless
a) Only (A)
b) Only (B)
c) Only (C)
d) Only (A) and (B)
e) All (A), (B) and (C)

3. What is/are the technology products which will play a significant role in moving towards cashless economy? Answer in the context of the passage.
(A) Internet Banking and Unified Payment Interface
(B) e-wallets
(C) BHIM App
a) Only (A)
b) Only (B)
c) Only (A) and (B)
d) Only (B) and (C)
e) All (A), (B) and (C)

4. Which of the following is not true in the context of the given passage?
a) A cashless economy runs on cash instead of credit! debit cards or electronic funds transfer.
b) The cash crunch caused by demonetisation forced the government to push for electronics payments and transfers.
c) Prime Minister Modi has already admitted that 100 per cent cashless society is never possible.
d) The launch of Jan Dhan Yojana was a step towards cashless economy.
e) None of the above

5. What is/are the advantage(s) of a cashless economy from government's perspective? Answer in the context of the passage.
a) The government will have to print less number of currency notes.
b) The government will save time in getting auditing of the deptt done.
c) The government will have a better control on financial institutions.
d) Most economic transactions would be part of the formal system and easy to track.
e) All the above

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

6. Pitch

a) role
b) problem
c) point
d) publicity
e) announcement

7. Redundant
a) unnecessary
b) concise
c) singular
d) moderate
e) integral

8. Impetus
a) hindrance
b) pressure
c) blockage
d) weakness
e) turn-off

Directions (Q. 9-10): Choose the word which is MOST OPPOSITE in meaning of the word printed in bold as used in the passage.
9. Crunch
a) crisis
b) crux
c) test
d) fortune
e) trouble

10. Prevalent
a) accepted
b) natural
c) general
d) typical
e) limited

Answer :
1).b 
 2).a 
 3).c 
 4).a 
 5).d 
 6).c 
 7).a 
 8).b 
 9).d 
 10).e

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