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(Paper) SBI Clerical Staff Selection - Model Questions and Answers
SBI Clerical Staff Selection, Model Questions and Answers
General English
Directions—(Q. 41–55) Read the following passage carefully and answer the questions given below it. Certain words are given in bold to help you to locate them while answering some of the questions.
A large majority of the poor in India are outside the formal banking system. The
policy of financial inclusion sets out to remedy this by making available a
basic banking ‘no frills’ account either with nil or very minimum balances
as well as charges that would make such accounts accessible to vast sections of
the population. However, the mere opening of a bank account in the name of every
household or adult person may not be enough, unless these accounts and financial
services offered to them are used by the account holders. At present, commercial
banks do not find it viable to provide services to the poor especially in the
rural areas because of huge transaction costs, low volumes of savings in the
accounts, lack of information on the account holder, etc. For the poor,
interacting with the banks with their paper work, economic costs of going to the
bank and the need for flexibility in their accounts, make them turn to other
informal channels or other institutions. Thus, there are constraints on both the
supply and the demand side.
Till now, banks were looking at these accounts from a purely credit perspective.
Instead, they should look at this from the point of view of meeting the huge
need of the poor for savings. Poor households want to save and contrary to the
common perception, do have the funds to save, but lack control. Informal mutual
saving systems like the Rotating Savings and Credit Associations (ROSCAs),
widespread in Africa and ‘thrift and credit groups’ in India demonstrate
that poor households save.
For the poor household, which lacks access to the formal
insurance system and the credit system, savings provide a safety net and help
them tide over crises. Savings can also keep them away from the clutches of
moneylenders, make formal institutions more favourable to lending to them,
encourage investment and make them shift to more productive activities, as they
may invest in slightly more risky activities which have an overall higher rate
of return.
Research shows the efficacy of informal institutions in increasing the savings
of the small account holders. An MFI in the Philippines, which had existing
account holders, was studied. They offered new products with ‘commitment
features’. One type had withdrawal restrictions in the sense that it required
individuals to restrict their right to withdraw any funds from their own
accounts until they reached a self-specified and documented goal. The other type
was deposit options. Clients could purchase a locked box for a small fee.
The key was with the bank and the client has to bring the box
to the bank to make the deposit. He could not dip into the savings even if he
wanted to. These accounts did not pay extra money and were illiquid.
Surprisingly, these products were popular even though these had restrictions.
Results showed that those who opted for these accounts with restrictions had
substantially greater savings rates than those who did not. The policy of
financial inclusion can be a success if financial inclusion focuses on both
saving needs and credit needs, having a diversified product portfolio for the
poor but recognising that self-control problems need to be addressed by having
commitment devices. The products with commitment features should be optional.
Furthermore transaction costs for the poor could be cut down, by making
innovative use of technology available and offering mobile vans with ATM and
deposit collection features which could visit villages periodically.
41. What is the aim of the financial inclusion policy ?
(A) A focus on savings needs rather than credit needs of the poor
(B) Minimising utilisation of technology in banks so as to reduce transaction
costs for the poor
(C) To boost low savings volumes in banks by encouraging savings among the rural
poor
(D) To make formal basic banking services available to the poor
(E) To regulate the rate at which moneylenders lend to the poor
42. The author’s main objective in writing the passage is
to—
(A) Criticise the concept of financial inclusion
(B) Point out the problems of financial inclusion
(C) Discuss ways of making the financial inclusion policy successful
(D) Compare financial inclusion policies of different countries
(E) Cite research in support of role of MFIs in achieving financial inclusion
43. Which of the following can be inferred about products with commitment
features ?
1. Demand for such products was high.
2. They were an effective means of increasing the savings of small account
holders.
3. Such facilities can only be offered by informal institutions like MFIs.
(A) All 1, 2 and 3 (B) Only 2
(C) Both 1 and 2 (D) Both 1 and 3
(E) None of these
44. Why do the poor not utilise banking services ?
1. Informal institutions offer higher rates of interest than those in banks.
2. Costs of reaching banks have to be borne by the poor.
3. Bank personnel do not treat the poor respectfully because their savings
amounts are minimal.
(A) Only 2 (B) Both 1 and 2
(C) Both 2 and 3 (D) All 1, 2, and 3
(E) None of these
45. Which of the following is a recommendation made by the author regarding
financial inclusion ?
(A) Reduce the paper work involved by seeking less information about the account
holder
(B) Lower transaction costs by utilising latest technology.
(C) Make commitment features compulsory for all savings accounts
(D) Entrust the responsibility of financial inclusion solely to MFIs
(E) Provide credit facilities even to those without savings accounts
46. Which of the following factors affects ‘saving’
behaviour among the poor
1. Threats from moneylenders if they avail of banking services.
2. Documentation required before availing of banking services.
3. Lack of self-control.
(A) Only 1 (B) All 1, 2 and 3
(C) Only 3 (D) Both 2 and 3
(E) None of these
47. What do the results of the study conducted in the
Philippines indicate ?
(A) Account holders in MFIs have higher savings rates than banks
(B) Many of the poor have to turn to moneylenders because of strict restrictions
in MFIs
(C) Having accounts with restriction on withdrawal requires the bank to offer a
higher rate of interest
(D) There should be strong security measures for deposit option accounts for the
poor
(E) None of these
48. Which of the following is true in the context of the
passage ?
(A) There are no informal means for the poor to save in India
(B) Having savings encourages the poor to invest only in low risk ventures
(C) There is a huge demand for savings facilities among poor households
(D) Presently commercial banks feel that it is feasible to provide banking
services to the poor in rural areas
(E) There are many official innovative savings systems like roscas in Africa
49. What is/are the outcome(s) of encouraging savings for the
poor ?
1. It frees them from the exploitation of moneylenders.
2. Banks are more willing to disburse loans to those who save.
3. They should invest in risky but high return ventures.
(A) Only 1
(B) Both 1 and 2
(C) Only 3
(D) All 1, 2 and 3
(E) None of these
50. What was the view of banks regarding the bank accounts of
the poor in the past ?
(A) They were considered a problem since account holders information needed to
be updated constantly
(B) Focus should be more on providing savings facilities not credit
(C) Moneylenders should be regulated so that they share responsibility of
disbursing loans to the poor
(D) Products with commitment features will not be successful
(E) None of these
Directions—(Q. 51–53) Choose the word which is most nearly the same
in meaning as the word printed in bold as used in the passage.
51. purely :
(A) morally
(B) honestly
(C) completely
(D) perfectly
(E) cleanly
52. demonstrate :
(A) protest
(B) occur
(C) estimate
(D) appear
(E) prove
53. remedy :
(A) medicine
(B) solve
(C) restore
(D) therapy
(E) heal
Directions—(Q. 54-55) Choose the word which is most opposite in meaning of the word printed in bold as used in the passage.
54. optional :
(A) voluntary
(B) compromise
(C) pressure
(D) mandatory
(E) free
55. accessible :
(A) convenient
(B) unavailable
(C) unfavourable
(D) unpleasant
(E) formal
Directions—(Q. 56–65) Read each sentence to find out whether there is
any error in it. The error, if any, will be in one part of the sentence. The
letter of that part is the answer. If there is no error, the answer is (E).
(Ignore errors of punctuation, if any).
56. The scheme failed because / some states could not / manage not to raise /
the necessaryfunds. No error. (A) (B) (C) (D) (E)
57. Real estate prices in the / business district of the city / are expected to
rise / at 15% this year. No error (A) (B) (C) (D) (E)
58. By so early as next year / that leading investment bank / has plans to open
/ an office in New Delhi. No error
(A) (B) (C) (D) (E)
59. There is lots of / supports from the employees / for the proposal to / merge
with the parent company. No error
(A) (B) (C) (D) (E)
60. Experts have recommended that / the government reconsidered / restrictions
imposed on foreign / investment in real estate. No error
(A) (B) (C) (D) (E)
61. The crucial point to / be discussed at the / meetings is how to / well
implement the policy.No error
(A) (B) (C) (D) (E)
62. He wants to / set up a laboratory / to undertake research / into a vaccine
for cancer. No error
(A) (B) (C) (D) (E)
63. According to him / two factors which are / needy for success / are
discipline and diligence. No error
(A) (B) (C) (D) (E)
64. Because of the pace at / which the company is growing / I believe it will
easily / achieve their target. No error
(A) (B) (C) (D) (E)
65. It is truth / that India is / the largest consumer of / gold in the world.
No error
(A) (B) (C) (D) (E)
Directions—(Q. 66–70) Which of the phrases (A), (B), (C) and (D)
given below should replace the phrase given in bold in the following sentence to
make the sentence grammatically meaningful and correct. If the sentence is
correct as it is and ‘No correction is required’, mark (E) as the answer.
66. The bank is overstaffed, has led to low productivity.
(A) Led to (B) Will lead towards
(C) And has led in (D) Which has led to
(E) No correction required
67. You delay in taking a decision conveys a negative impression.
(A) You delay to take
(B) If you delay taking
(C) Your delay in taking
(D) To delay by taking
(E) No correction required
68. Today management student itself are opted to work for NGOs even though the
salaries offered to them are low.
(A) Student itself is
(B) Students themselves are
(C) Students have
(D) Student himself has
(E) No correction required
69. Absence off any guidelines, they are unwilling to take up the project.
(A) Absent of
(B) In the absence of
(C) Because of the absence
(D) Without being absent
(E) No correction required
70. Without the development of rural people the country can no claim to be
developed.
(A) Can never claim
(B) Being claimed
(C) Not able to claim
(D) Have not any claim
(E) No correction required
Directions—(Q. 71–75) In each question below a sentence with four words
printed in bold type is given. These are lettered as (A), (B), (C) and (D). One
of these four words printed in bold may be either wrongly spelt or inappropriate
in the context of the sentence. Find out the word, which is wrongly spelt or
inappropriate, if any. The number of that word is your answer. If all the words
printed in bold are correctly spelt and also appropriate in the context of the
sentence, mark (E) i.e.. ‘All Correct’ as your answer.
71. The organization preferred to hire locale population as they understood the
language and customer preferences. All Correct
(A) (B) (C) (D) (E)
72. In our opinion the exicting assessment system requires immediate
revision.All Correct
(A) (B) (C) (D) (E)
73. In responds to the advertisement a sizeable number of candidates have
submitted their applications. All Correct
(A) (B) (C) (D) (E)
74. There is no guarantee that if this model is adopted the entire sector will
prosper.All Correct
(A) (B) (C) (D) (E)
75. With this unique init
iative the company hopes to sustain its current growth rate.
All Correct
(A) (B) (C) (D) (E)
Directions—(Q. 76–80) In each of the following sentences there are
two blank spaces. Below each five pairs of words have been denoted by letters
(A), (B), (C), (D) and (E). Find out which pair of words can be filled up in the
blanks in the sentence in the same sequence to make the sentence meaningfully
complete.
76. Mr. Srinivasan is …… to become Chairman of the group
…… the retirement of his father.
(A) set, following
(B) voted, subsequent
(C) selected, despite
(D) approved, because
(E) decided, after
77. …… to your error the …… consignment has been delayed by a week.
(A) According, important
(B) Duly, urgent
(C) Owing, entire
(D) Added, crucial
(E) Admitting, special
78. On account of the …… in sales the software firm has achieved an eight
percent …… in net profit.
(A) surge, fall (B) increase, rise
(C) decline, slope (D) hike, loss
(E) growth, advance
79. We are proud to say that today …… 26 percent of our total accounts are
…… by women and senior citizens.
(A) approximate, held
(B) nearly, authorised
(C) over, maintain
(D) above, open
(E) around, operated
80. The company has …… special training to employees on …… to trade
online.
(A) announced, benefits
(B) offered, course
(C) imparted, risks
(D) sanction, skills
(E) provided, how
Answewrs With Explanation :
41. (d) 42. (c) 43. (d) 44. (a) 45. (b)
46. (d) 47. (a) 48. (c) 49. (b) 50. (e)
51. (c) 52. (E) 53. (b) 54. (d) 55. (b)
56. (c) In C part not is redundant.
57. (e)
58. (A) Change ‘so’ to ‘as’.
59. (a) Change ‘is’ to ‘are’ because the subject is plural ‘lots of
support’.
60. (b) Change ‘reconsidered’ to ‘reconsider or should reconsider’
because of parallelism of the two sentences.
61. (d) Change the position of adverb ‘well’, it should be used in the end
of the sentence.
62. (e)
63. (c) Change ‘needy’ to ‘needed’ here we require a verb.
64. (d) Change ‘their’ to ‘its’ because its subject is singular.
65. (A) Change ‘truth’ to ‘true’ or ‘a truth’.
66. (d) 67. (c) 68. (c) 69. (B) 70. (a)
71. (b) Change ‘locale’ to ‘local’ here we want an adjective.
72. (a) Change ‘exicting’ to ‘existing’. Exciting is not appropriate.
73. (a) Change ‘responds’ to ‘response’.
74. (e) Change ‘adopted’ to ‘adapted’.
75. (d) Change ‘currant’ to ‘current’.
76. (a) 77. (c) 78. (b) 79. (e) 80. (E)