Directions (Next Ten Questions) : Read the following passage carefully and answer the questions based on it. Some words have been printed in bold to help you locate them while answering some of the questions.
Gross Domestic Savings (GDS) play a vital role in the economic growth of a country since it facilitates to provide requisite financial resources to undertake various developmental and welfare programs. A high level of savings helps the economy to progress on a continuous growth path as investment is mainly financed out of savings. GDS is one of the important economic indicators to measure the financial regulation and soundness of the country. Absence of required savings rate may lead to external dependence, which may jeopardize the interests of the Nation.
Savings habit is an in-built culture of the Indian system and it has been growing consistently over the years. The GDS percentage to GDP has shown considerable improvement from 10% in 1950 to 33.70% in 2010, which is one of the highest globally. It is interesting to note that while the share of corporate sector increased from 10% to 24% during 1950 to 2010, the share of public sector has come down to 6% from 18% during the said period. The buoyancy of corporate sector in post reform era could be one of the reasons for increased share of corporates in GDS. While there is increasing trend in saving rate, marginal decline is observed under household sector i.e. 72% to 70%
Notwithstanding the fact that the share of household savings to GDS is showing decline, still this segment is the significant contributor to GDS with 70% share. Indian households are among the most frugal in the world. However, commensurate capital formation has not been taking place as a lion’s share of household savings are being parked in physical assets compared to financial assets.
The pattern of disposition of saving is an important factor in determining how the saved amount is utilized for productive purposes. The proportion of household saving in financial assets determines the channelization of saving for investment in other sectors of the economy. However, the volume of investment of saving in physical assets determines the productivity and generation of income in that sector itself.
Post independence era has witnessed a significant shift in deployment of household savings especially the share of financial assets increased from 26.39% in 1950 to 54.05% in 1990 may be on account of increased bank branch network across the country coupled with improved awareness of investors on various financial/banking products. However, contrast to common expectations, the share of financial assets in total household savings has come down from 54.05% to 50.21% especially in post reform period i.e. 1990 to 2010 despite providing easy access and availability of banking facilities compared to earlier years. The increased share of physical assets over financial assets (around 4%) during the last two decades is a cause of concern requires focused attention to arrest the trend.
Traditionally, the Indians are risk-averse and prefer to invest surplus funds in physical assets such as Gold. Silver and lands Nevertheless, considerable share of savings also flowing to financial assets, which includes, currency, Bank Deposits, Claims on Government, contractual savings, Equities.
The composition of household financial savings shows that the bank deposits (44%) continue to remain the major contributor along with the rise in the Contractual Savings, Claims on Government and Currency.
Though there was gradual decline in currency holdings by the households i.e.13.79% in 1970s to 9.30% in 2007, still the present currency holding level with households appears to be on high side compared to other countries. The primary reasons for higher currency holdings could be absence of banking facilities in majority villages ( 5.70 lakh villages) as well as hoarding of unaccounted money in the form of cash to circumvent tax laws. Though, cash is treated as financial asset, in reality, a major portion of currency is blocked and become unproductive.
Bank deposits seemed to be the preferred choice mainly on account of its inbuilt features such as safety, Security and Liquidity. Traditionally, the Household sector has been playing a leading role in the landscape of bank deposits followed by the Government sector. However, the last two decades has witnessed significant shift in ownership of bank deposits. While there was improvement in corporate and Government sectors’ share by 8.30% and 7.20% respectively during the period 1999 to 2009, household sector lost a share of 13.30% in the post reform period.
In the post independence era, Indian financial system was characterized by poor infrastructure and low level of financial deepening. Saving in physical assets constituted the largest portion of the savings compared to the financial assets in the initial years of the planning periods. While rural households were keen on acquiring farm assets, the portfolio o urban households constituted consumer durables, gold, jewellery and house property.
Despite the fact that the household savings have been gradually moving from physical assets to financial assets over the years, still 49.79% of household savings are wrapped in unproductive physical assets, which is a cause of concern as the share of physical assets to total savings are very high in the recent years compared to emerging economies. This trend needs to be arrested as scarce funds are being diverted into unproductive segments.
Of course, investment in Real estate sector can be treated as productive provided construction activity is commenced within reasonable time, but it is regrettably note that many investors just buy and hold it for speculation leading to unproductive investments.
India has probably the largest fascination with gold than any other country in the world with a share of 9.50% of the world’s total gold holdings. The world Gold Council believes that they are over 18000 tonnes of gold holding in the country. More impressive is the fact that current demand from India alone consumes 25% of the world’s annual gold output. Large amount of capital is blocked in gold which resides in bank lockers and remain unproductive.
Indian economy would grow faster if the capital markets could attract more of the nation’s savings and channel them into more productive areas, especially infrastructure. If the Indian market can develop and evolve into a more mature financial system. Which persuades the middle class to put more of its money into equities, the potential is mind-boggling.
Directions (Next Ten Questions) : In the following passage, there are blanks, each of which has been numbered. These numbers are printed below the passage and against each, five words are suggested, one of which fits the blank appropriately. Find out the appropriate word in each case.
The rise of Asian manufactures in the 1990s hit African firms hard; many were wiped out. Northern Nigeria, which once had a ….(Question 1)…garments industry, was unable to…..(Question 2)…with low-cast imports. South Africa has similar problems; its manufacturing failed to grow last year….(Question 3)….the continental boom.
This is partly the ….(Question 4)…of governments. Buoyed by commodity income, they have neglected industry’s needs….(Question 5)…for roads and electricity. But that, too, may at last be changing. Wolfgang Fengler, a world Bank economist, says, “Africa is now in a good position to industrialise with the right mix of ingredients”. This includes…(Question 6)…demography, urbanization, an emerging middle class and strong services. “ For this to happen, “ he adds, “the continent will need to scale up its infrastructure…(Question 7)…and improve the business climate and many (African) countries have started to…(Question 8)…these challenges in recent years.”
Kenya is not about to become…(Question 9)…next South Korea. African countries are likely to follow a more diverse path, benefitting from the growth of countless small and medium sized businesses, as well as some big ones. For the next decade or so, services will still generate more jobs and wealth in Africa than manufacturing. Which is fine. India has….(Question 10)…for more than two decades on the back of services while steadily building a manufacturing sector from a very low base. Do not bet against Africa doing the same.
Directions (Next Seven Questions) : Study the following information carefully to answer the questions.
In a medical college, there are 1600 students studying Dentistry and Homeopathy. Each student from each course knows one or more languages out of English, Hindi and Bangla. 45% of the students study Dentistry and remaining students study Homeopathy.
Out of the students studying Dentistry boys and girls are in the ratio of 5:3 respectively.
Out of the boys studying Dentistry, 16% know only English, 10%know only Hindi and 4% know only Bangla. 24% know English as well as Hindi, 20% English as well as Bangla, 14% know Hindi as well as Bangla. Remaining boys know all three languages.
Out of the girls studying Dentistry, 20% know only English, 10% know only Hindi and 10% know only Bangla. 20% know English as well as Hindi, 20% know English as well as Bangla, 10% know Hindi as well as Bangla. Remaining girls know all three languages.
Out of the students studying Homeopathy boys and girls are in the ratio of 4:7 respectively.
Out of the boys studying Homeopathy, 20% know only English, 15% know only Hindi and 5% know only Bangla. 15% know English as well as Hindi,25% know English as well as Bangla, 10% know Hindi as well as Bangla. Remaining boys know all three languages.
Out of the girls studying Homeopathy, 15% know only English, 15% know only Hindi and 5%know only Bangla. 20% know English as well as Hindi, 20% know English as well as Bangla, 15% know Hindi as well as Bangla. Remaining girls know all three languages.
Directions (Next Six Questions) : Read the information carefully and answer the given questions.
A,B,C,D,E,F,G and H are sitting around a circular area at equal distance between each other, but not necessarily in the same order. Some of the people are facing the centre while some face outside (i.e., in a direction opposite to the centre). Facing the same direction means if one faces the centre then other also faces the centre and vice versa. Facing opposite direction means If one person faces the centre then the other faces outside and vice-versa.
D sits second to the left of B. B faces outside. A and F are immediate neighbours of D. H sits second to the right of A. C sits third to the left of H. E sits to the immediate right of G. D sits third to the left of E. D faces the same direction as H.F sits to the immediate right of C. F and G take same directions.
Directions (Next Six Questions) : study the given information and answer the questions.
When a word and number arrangement machine is given an input line of words and numbers. It arranges them following a particular rule. The following is an illustration of input and rearrangement. ( All the numbers are two digit numbers)
Input : initiators 32 67 of 40 the company 21 are 18 96 humble
Step I : 21 initiators 32 67 of 40 the company are 96 humble 18
Step II: company 21 initiators 32 67 of 40 the 96 humble 18 are
Step III : 40 company 21 initiators 67 of the 96 humble 18 are 32
Step IV : initiators 40 company 21 67 of the 96 18 are 32 humble
Step V : 96 Initiators 40 company 21 of the 18 are 32 humble 67
Step VI : the 96 initiators 40 company 21 18 are 32 humble 67 of
Step VI is the last step of the above arrangement as the intended arrangement is obtained. As per the rules followed in the given steps, find out the appropriate steps for the given input.
Input : Parenting 16 36 and raising 44 children 21 is 89 very 95 demanding 72 job 65.
Directions (Next Five Questions) : Read the given information and answer the given questions.
Eight people P,Q,R,S,T,U,V and W live on separate floors of an 8-floor building. Ground floor is numbered-1, first floor is numbered-2 and so on until the topmost floor is numbered 8.
P lives on floor numbered five. Only two people live between P and Q. Q lives above P.
V lives immediately above S. T lives immediately above R.
Only one person lives between T and W.
T lives above W. U lives on an odd numbered floor.