Question Paper from: SBI PO Prelims 2017

The widespread consternation over the rupee hitting a 27-month low against the dollar is unwarranted, for the Indian currency has been among the better .....(11)....... [hiking] currencies over the last couple of years. While other ..........(12) .........[trickling] market currencies such as the Russian rouble and the Brazilian real are down more than 20 per cent this year, the rupee is lower by just 6 per cent. This follows a strong performance in 2014, when the Indian currency lost just 1.2 per cent against the greenback. It is obvious that the rupee is in a sweet spot .........(13)....... [peculiar] to its emerging market peers, which have been hit hard by the ............(14)......... [ascent] in commodity prices. India, on the other hand, has benefited from this fall. The crash in crude prices combined with the checks on gold imports have helped ........(15)....... [recede] the current account deficit to just 1.27 per cent of GDP. Strong foreign inflows — from both portfolio and direct investments — have pushed India’s forex reserves to $351 billion; we are among the few countries that have .......(16)....... [considered] to increase forex reserves since the middle of last year. These reserves provide the Indian central bank with ......(17)...... [ammunition] to protect the rupee from shortterm volatility that may arise once the Federal Reserve goes through with its long-anticipated rate hike. Since the Fed has given financial markets sufficient time to ..........(18)....... [discern] the move, a 25 basis points move is not likely to cause too much turbulence. True, some short-term money will flow out of the equity markets; foreign portfolio investors have .........(19)...... [turned] net sellers since November. But long-term investors are likely to stay put due to the better growth ........(20)..... [contrariety] of Indian companies. The superior real yield, falling inflation and a stable rupee also make a strong case for staying invested in Indian debt instruments.

Choose the correct answer from the given options to fill in the blanks which are numbered.

1:

No correction required

2:

thing

3:

product

4:

process

5:

gadget

Solution:
Chapter Name: Cloze Test
Difficulty Level: Moderate

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