English Grammar Questions & Answers for Competitive Exams Pdf - 1

The interest rates in the institutional market have come down significantly and at present are in the range of 5.25 to 5.75 percent per annum. However, interest rates on small savings schemes such as the Post Office Saving Scheme, RBI Relief Bonds, Provident Fund and PPF continue to be administered at high levels in relation to market rates. These schemes also have a variety of tax incentives, which result in much higher post tax returns and on the flip side more liability for the government. It is ironic that it is predominantly the urban population (and more often people in the high tax bracket), which is benefiting from high rates and tax benefits. The size of small savings has assumed a significant proportion of financial savings in the country. This has also increased dramatically the debt service burden of both Central and State Government.

Question: 1

The interest rate in the institutional market till five years ago was more than 8 percent.

(A) Probably false

(B) Definitely false

(C) Data inadequate

(D) Probably true

Ans: C

The given fact is neither mentioned in nor can be derived from the given passage.

Question: 2

The interest rates on small savings have decreased considerably during the last few years.

(A) Definitely false

(B) Definitely true

(C) Probably true

(D) Probably false

Ans: A

The first two sentences of the passage refute the given fact.

Question: 3

Tax incentives are provided to benefit all sections of the society.

(A) Probably true

(B) Probably false

(C) Definitely true

(D) Definitely false

Ans: C

According to the passage, it is ironical that the upper class urban population is taking maximum benefit of the tax incentives on small savings schemes. Thus, the upper class is availing of the benefit, while the writer intends the lower classes to benefit from the same. This implies the given inference.

Question: 4

Returns on different Government administered savings schemes are higher for tax-paying individuals.

(A) Definitely true

(B) Definitely false

(C) Probably false

(D) Probably true

Ans: A

It is clearly mentioned in the passage that people in the high tax bracket are benefiting more from high rates and tax benefits.

Question: 5

The Government administered savings schemes in the long run drain out exchequer's money.

(A) Probably true

(B) Definitely false

(C) Definitely true

(D) Probably false

Ans: C

The given inference directly follows from the last sentence of the passage.

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