Mock Paper for SBI PO 2014: English (Comprehension)

Last Updated: Wed, Feb 01, 2017 12:56 hrs

SBI will be conducting the written examination for recruitment to the post of Probationary Officers in June, 2014. The written examination consists of 4 sections-

  1. Reasoning

  2. English

  3. Data Interpretation and Analysis

  4. General Awareness, Marketing & Computers.

50 questions will be asked from each section.

MockBank, a group of experts who carefully create mock tests specific to each competitive examination, have come up with sample questions regarding
English (Comprehension) for SBI PO 2014.

Read the following passage carefully and answer the questions given below it. Certain words have been printed in bold to help you locate them while answering some of the questions.

Giving loans to impoverished women to make ceramics or to farmers to buy milk cows were not seen as great business. Microfinance was an industry championed by antipoverty activists. Today it is on the verge of a revolution, with billions of dollars from big banks, private-equity shops and pension funds pouring in, driving growth of 30% to 40% this year alone. In 1998, a nonprofit microfinance organization in Peru, converted into a bank (called Mibanco). This demonstrated that the poor are good risks who repay loans on time and getting them together, not only chips away at poverty but also turns a profit. The success of Mibanco has piqued the interest of commercial banks, which had previously shunned the country’s poor. Now big banks are going after Mibanco’s clients with low-rate loans and realizing it takes special know-how to work with the unbanked—are hiring away Mibanco’s staff.

But with the emergence of players who are only out for profit, microfinance schemes could end up milking the poor. This could happen in countries where lenders don’t have to disclose interest rates. It When a Mexican micro financier went public, revealing its loans had rates of about 86% annually, the Consultative Group to Assist the Poor (CGAP) criticized it for putting shareholders ahead of clients. The pressure to turn a profit also forces micro financiers to change their business models in ways that depart from the industry’s core mission: to help poor people lead better lives. Such shifts have caused the average loan size to triple. Moreover smaller loans being costlier to service, a lower percentage of loans go to women because they tend to take out smaller sums. According to CGAP, with the flood of new large entities there is the risk that a large percentage of cross-border funds go to Latin 

America and Eastern Europe, the world’s most developed microfinance markets. “The poorest of the world’s poor, who are predominantly in Asia and Africa get left out,” says the CEO of the nonprofit Grameen Foundation, which helps develop microfinance institutions. Segmenting the industry, might be worthwhile if it allows more of the poor to get access to credit. Multinational corporations could take the top microfinance institutions to the next level, and the remainder could be the responsibility of development groups and regional banks. Yet making loans to poor people is hardly a poverty cure. Property rights and the rule of law matter too. One cannot over idealize what microfinance alone can do. Most nonprofits started with lending simply because local laws prohibited nonbanks from offering deposit accounts. With an increase in competition and marketing efforts, poverty-alleviation experts are concerned that people will be talked into loans they wouldn’t otherwise want. For example, organizations like Mibanco are providing consumer loans. There is nothing wrong with buying TVs and microwaves on credit, but certain markets, like Mexico, have been flooded with loans that have nothing to do with providing capital to aspiring entrepreneurs — just increasing household debt.

1. What does the transformation of Peru’s nonprofit organization into a bank illustrate?

(A) To compete with commercial banks, microfinance institutions should convert into banks and offer a wide variety of services.

(B) Microfinance institutions turn higher profits as banks since interest rates on loans are at their discretion.

(C) The poor prefer to go to large banks rather than NGOs to obtain loans.

(1) None (2) Both (A) & (B) (3) All (A), (B) & (C)

(4) Only (A) (5) None of these

2. What was the impact of the non disclosure of their interest rates by lending institutions ?

(1) The Government issued sanctions against such firms. ,

(2) Shareholders interests were not protected.

(3) More microfinance institutions were motivated to go public.

(4) The poor were exploited.

(5) None of these

3. What is the author’s opinion about the competition for customers among micro financiers?

(1) It benefits the poor by providing them with loans they would have otherwise not had access to.

(2) It is futile since the poor have to pay high rates of interest on property loans.

(3) It is not beneficial since firms waste their profits on marketing rather than helping the poor.

(4) It is a disadvantage since micro financiers use any means possible to recover loans.

(5) None of these

4. Which of the following is/are the challenge/s faced by Mibanco at present from big banks ?

(A) Ensuring loyalty of their customers. .

(B) Retention of employees.

(C) Maintaining low interest rates.

(1) Only (C) (2) Both (A) & (B) (3) Both (B) & (C)

(4) Only (B) (5) None of these

5. Which of the following is/are consequence/s of micro financiers altering their business models ?

(A) Larger loan amounts get sanctioned.

(B) Debt among the poor has fallen in some countries.

(C) Drop in the loans awarded to women.

(1) Both (A) & (B) (2) Both (A) & (C) (3) Only (C)

(4) All (A), (B) & (C) (5) None of these

6-8.Choose the word which is most similar in meaning to the word printed in bold as used in the passage.

6. depart :

(1) absent (2) retirement (3) divide (4) expire (5) vary

7. piqued :

(1) provoked (2) irritated (3) disturb (4) offended (5) fascinated

8. verge :

(1) tend (2) crossroad (3) ascent (4) slope (5) threshold

9-10.Choose the word which is most opposite in meaning of the word printed in bold as used in the passage.

9. aspiring :

(1) uninterested (2) ungrateful (3) anxious (4) miserable (5) fraudulent

10. core :

(1) clear (2) unnecessary (3) crust (4) beside (5) uncoordinated


1. (E) 2. (D) 3. (C) 4. (C) 5. (C)

6. (E) 7. (A) 8. (A) 9. (A) 10. (B)

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