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These Questions Completely based on Single “The Hindu” Editorial. The purpose to start this is to make you read the same paragraph again and again to understand the different types of questions like comprehension, cloze test, sentence arrangement, sentence improvement, vocab, antonyms, synonyms, fillers (all based on single paragraph) etc. reading this paragraph while practicing these questions will help you understand “The Hindu” Editorial Deeply which will help you in Every exam.

The Hindu: 03 August 2019

Fed’s insurance policy: On Federal Reserve’s rate cut

The rate cut is aimed at insuring against global risks to favourable U.S. economic outlook

The U.S. Federal Reserve on Wednesday announced its first reduction in the funds rate since 2008, a move that was widely expected. Elaborating on the Federal Open Market Committee’s rationale in deciding policy action, Chairman Jerome Powell was emphatic that the aim was to provide a measure of insurance, especially given that the outlook for the U.S. economy remains favourable. The quarter percentage point interest rate cut, he said, was designed to support economic growth by ensuring that confidence was kept intact and “intended to insure against downside risks from weak global growth and trade policy uncertainty.” In the space of less than three quarters, the Fed has pivoted from talking of further rate increases, to being on hold, to finally cutting interest rates as a global economic slowdown is exacerbated by trade tensions unleashed by U.S. President Donald Trump’s aggressively insular approach to trade ties. The U.S. economy, which expanded by 2.9% in 2018 and posted a 3.1% expansion in the first quarter, slowed to a 2.1% pace in the second quarter, with the ongoing trade war with China blamed for a manufacturing slowdown as well as a decline in business investment. Just last week, the IMF pared its forecast for global growth in 2019 by 0.1 percentage point to 3.2%, warning that “risks to the forecast are mainly to the downside”. The IMF cautioned that further trade tensions could dent sentiment and slow investment, a theme that Mr. Powell too referred to, when he said the rate cut was intended “to help offset the effects these factors are currently having on the economy.”

The Fed Chairman, however, finds himself in an unenviable situation with the rate reduction satisfying neither the sharply critical President who appointed him in 2018, nor the markets where investors fretted that Mr. Powell had failed to signal the start of a protracted easing cycle. A fair part of the problem appears to be of his own making as the central bank chief muddled his messaging, speaking at one point during the post policy press conference of a “somewhat more accommodative stance”, and at another emphasising that the move was not the start of a long series of rate cuts. Central bankers at the best of times have a delicate balancing act to perform to ensure that policies to support growth do not lead to a dilution of focus on price stability. In the Fed’s case, Chairman Powell is clearly concerned that with inflation in the U.S. stubbornly refusing to move toward the central bank’s 2% objective, there is a risk that persistent global disinflationary pressures could at some point feed into the domestic economy, undermining its efforts to spur wage and price gains. For the RBI, the Fed’s move signals that, for now at least, it can stay on its accommodative path in the confidence that U.S. investors seeking rate arbitrage may hit the pause button on plans to head home.


Directions (1-3) Choose the similar meaning

Q1. Elaborating

a)ductile      b)cachet         c)detailed     d)all        e) None

Q2. Exacerbated  

a)stature      b)biddable         c) prominence     d)compound        e) None

Q3. Unenviable

a)astounded      b)nasty         c)yield     d)exasperate        e) None

Directions: (4-5) choose the opposite meaning

Q4. Muddled

a)Orderly      b)parade         c)daub    d) all       e) None

Q5. Stubbornly 

a)unwillingly      b)docile         c)buckle up     d) all       e) None

Direction (6-7): Which of the following phrases given below each sentence should replace the phrase printed in bold letters to make the sentence meaningfully correct. Choose the best option among the five given alternatives that reflect the correct use of phrase in the context of the grammatically correct sentence. If the sentence is correct as it is, mark “No Error” as your answer.

Q6. Central bankers at the best of times has a delicate balancing act to perform to ensure that policies to support growth do not lead to a dilution of focus on price stability. 

a)times had a                       

b)times a                       

c) times have a 

d)times has a                       

e) None

Q7. The U.S. Federal Reserve on Wednesday announced its first reduction in the funds rate for 2008, a move that was widely expected.

a) funds rate for             

b) funds rate since                 

c) fund rate since 

d) funds rate               

e) None

Directions (8-10): In the passage given below there are blanks which are numbered from 8 to 10. They are to be filled with the options given below the passage against each of the respective numbers. Find out the appropriate word in each case which can most suitably complete the sentence without altering its meaning. If none of the words given in options fits in, mark ‘None of these’ as your answer choice.

In the Fed’s case, Chairman Powell is clearly …….8…….that with inflation in the U.S. stubbornly refusing to move toward the central bank’s 2% objective, there is a risk that …….9……. global ……..10…….. pressures could at some point feed into the domestic economy, undermining its efforts to spur wage and price gains. 

Q8. 

a)stubborn     

b)insistent         

c)concerned     

d) all       

e) None

Q9. 

a)constant           

b)agitate       

c)persistent     

d) all       

e) None

Q10. 

a) disinflationary 

b)unease       

c)relentless     

d) all       

e) None

Directions (11-12): Read each of the following sentences to find out if there is any grammatical error in it. The error, if any, will be in one part of the sentence. The number (A, B, C or d) of this part is your answer. If there is no error in the statement, then mark option (e) as your answer choice.

Q11. The Fed Chairman, however, finds himself(a)/ in a unenviable situation with the rate(b)/ reduction satisfying neither the sharply critical President who appointed him in 2018,(c)/ nor the markets where investors fretted that Mr. Powell had failed to signal the start of a protracted easing cycle(d)/(e)/

  1. a) a              b) b                 c) c                     d) d                   e) e

Q12. The quarter percentage point interest rate cut(a)/, he said, was designed to support economic growth by ensuring that(b)/ confidence was kept (c)/intact and “intended to insure against downside risks from weak global growth and trade policy uncertainty(d)/(e)/ 

  1. a) a              b) b                 c) c                     d) d                   e) e

Directions (13-15): Rearrange the following sentences (a), (b), (c), (d), and (e) in the proper sequence to form a meaningful paragraph and then answer the questions given below.

  1. a)Just last week, the IMF pared its forecast for global growth in 2019 by 0.1 percentage point to 3.2%, warning that “risks to the forecast are mainly to the downside”.   
  2. b)In the space of less than three quarters, the Fed has pivoted from talking of further rate increases, to being on hold, to finally cutting interest rates.
  3. c)The U.S. economy, which expanded by 2.9% in 2018 and posted a 3.1% expansion in the first quarter, slowed to a 2.1% pace in the second quarter, with the ongoing trade war with China.
  4. d)Blamed for a manufacturing slowdown as well as a decline in business investment. 
  5. e)As a global economic slowdown is exacerbated by trade tensions unleashed by U.S. President Donald Trump’s aggressively insular approach to trade ties.       

Q13. Which is the Second step after rearrangement?

  1. a) A          b) B           c) C           d) D          e) E 

Q14. Which is the First step after rearrangement?

  1. a) A         b) B            c) C           d) D          e) E

Q15. Which is the Fourth step after rearrangement?

  1. a) A         b) B            c) C           d) D          e) E

Directions (16-17): In each of the following sentences, there is a blank space. Below each such sentence, there are four options with one word each. Fill up the blank with the word that makes the sentence grammatically and contextually correct. If none of the four words is your answer, choose option (e) as your answer choice.

Q16. The IMF ……..that further trade tensions could dent sentiment and slow investment, a theme that Mr. Powell too referred to, when he said the rate cut was intended “to help offset the effects these ………. are currently having on the economy.”

a)foster,refract       

b) facet, spun         

c)cautioned,factors       

d) All   

e) None

Q17. The rate ………. satisfying neither the sharply critical President who appointed him in 2018, nor the markets where investors fretted that Mr. Powell had failed to signal the start of a ……. easing cycle

a)extended, aspect       

b)overlong, strand       

c)reduction, protracted     

d) All       

e) None

Directions (18-20): Answer the questions given below based on the passage.

Q18. According to passage why IMF cautioned ?

a)dent sentiments   b)slow investment   c)trade tension       d)All        e) None

Q19. According to passage U.S. economy expanded by how much percentage?

a)2.1%                  b)3.1%                   c)2.9%                  d)All        e) None

Q20. Which of the following statements is/are true in context of the passage above?

(I)  rate cut was intended “to help offset the trade fluctuation in the economy.”

(II)  trade tensions leashed by U.S. President Donald Trump’s a

(III) the IMF pared its forecast for global growth in 2019 by 0.1 percentage point to 3.2%

  1. a) Only (III)     
  2. b) Both (I) and (II)     
  3. c) Both (II) and (III)     
  4. d) All are incorrect   
  5. e) None

Answers With Explanation

Ans.1, c it means involving many carefully arranged parts or details; detailed and complicated in design and planning.

Ans.2, d it means make (a problem, bad situation, or negative feeling) worse.

Ans.3, b it means difficult, undesirable, or unpleasant.

Ans.4, a Muddle means bring into a disordered or confusing state. Orderly means neatly and methodically arranged.

Ans.5, b Stubborn means having or showing dogged determination not to change one’s attitude or position on something, especially in spite of good arguments or reasons to do so.

Docile means ready to accept control or instruction; submissive.

Ans.6, c Have is used with some pronouns and plural nouns:

‘I have a great English teacher.’

‘You have toothpaste on your chin.’

Has is used with the third person singular. For example:

‘She has a great personality.’

‘He has a new haircut.’

Ans.7, b We use For when we measure the duration – when we say how long something lasts.

For + a period of time 

To measure a period of time up to the present, we use the present perfect tense and not the present tense.

I have known her for a long time. (Correct) 

Since gives the starting point of actions, events or states. It refers to when things began.

Since + a point in time (in the past), until now.

I’ve been waiting since 7 o’clock.

Ans.8, c it means worried, troubled, or anxious.

Ans.9, c it means continuing firmly or obstinately in an opinion or course of action in spite of difficulty or opposition.

Ans.10, a it means reduction in the rate of inflation.

Ans.11, b put an in place of a, Use the indefinite article a or an only with a singular count noun whose specific identity is not known to the reader. Use a before nouns that begin with a consonant sound, and use an before nouns that begin with a vowel sound.

Use the article a or an to indicate any non-specified member of a group or category.

I think an animal is in the garage

That man is a scoundrel.

Ans.12, e no error.

Ans.13, e is correct. Because correct sequence is BECDA

Ans.14, b is correct.

Ans.15, d is correct.

Ans.16, c cautioned means care taken to avoid danger or mistakes. Factor means a circumstance, fact, or influence that contributes to a result.

Ans.17, c reduction means the action or fact of making something smaller or less in amount, degree, or size. Protracted means lasting for a long time or longer than expected or usual.

Ans.18, d according to passage all are correct.

Ans.19, c according to passage c is correct.

Ans.20, a according to passage a is correct.

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