National Institute of Fashion & Technology (NIFT) Post Graduate 2014 Question Paper With Answer Key

National Institute of Fashions & Technology (NIFT) Post Graduate Question Paper-2014

GENERAL ABILITY TEST

Directions (Qs. 1-15) : Choose the option which best expresses the meaning of the underlined idiom/phrase in the sentence.

1. The machine was fabricated in own workshop.

(A) operated

(B) installed

(C) constructed

(D) designed

Answer: (C)

2. The quiz game comprise three round.

(A) involve

(B) consists of

(C) incorporates

(D) retains

Answer: (B)

3. Since he promised to do so, I presume he will come.

(A) think

(B) guess

(C) suppose

(D) believe

Answer: (C)

4. The old man lives alone in a dilapidated

(A) shabby

(B) ugly

(C) broken

(D) decayed

Answer: (D)

5. Johar has always been an exclusive

(A) baffling

(B) quarrelsome

(C) reliable

(D) honest

Answer: (C)

6. He is a very timid

(A) dashing

(B) outgoing

(C) bold

(D) chivalrous

Answer: (D)

7. Many people try to resist reforms in society.

(A) repel

(B) welcome

(C) accept

(D) fight

Answer: (A)

8. She has a slender

(A) strong

(B) well-built

(C) slim

(D) stout

Answer: (C)

9. Old people are usually more conservative than young people.

(A) reproachful

(B) dynamic

(C) liberal

(D) modern

Answer: (A)

10. The woman was frantic when she realized she left her purse at the store.

(A) composed

(B) agitated

(C) upset

(D) angry

Answer: (B)

11. He burnt his fingers by interfering in his neighbour’s affairs.

(A) got rebuked

(B) got himself insulted

(C) burnt himself

(D) got himself into trouble

Answer: (D)

12. He is over head and ears in love now.

(A) not much

(B) unknowingly

(C) deeply

(D) mistakenly

Answer: (C)

13. One could observe the opposition to the new policy by the rank and file of the Government.

(A) majority

(B) special members

(C) official machinery

(D) ordinary members

Answer: (D)

14. Please do not add fuel to the fire.

(A) twist the situation

(B) create a problem

(C) aggravate trouble

(D) complicate a situation

Answer: (C)

15. Crossing the river was a herculean task for me.

(A) easy work

(B) work needing great effort

(C) a new task

(D) impossible task

Answer: (B)

Directions (Qs. 16-20) : A word has been written in four different ways out of which only one is correctly spelt. Choose the correctly spelt word.

16. 

(A) Restaurant

(B) Rasteraunt

(C) Rastaurent

(D) Restaurent

Answer: (A)

17. 

(A) Apreciate

(B) Appreciate

(C) Appresiate

(D) Appereciate

Answer: (B)

18. 

(A) Sychology

(B) Pshycology

(C) Sycology

(D) Psychology

Answer: (D)

19. 

(A) Assasination

(B) Asasination

(C) Asassination

(D) Assassination

Answer: (D)

20. 

(A) Milennium

(B) Millennium

(C) Millenium

(D) Milenium

Answer: (B)

Directions (Qs. 21-25) : In each question, choose the one word can be substituted for the given sentence/words.

21. To mediate between two parties in a dispute

(A) Interfere

(B) Intercede

(C) Interact

(D) Dialogue

Answer: (B)

22. One who specializes in the study of birds

(A) Naturalist

(B) Zoologist

(C) Ornithologist

(D) Biologist

Answer: (C)

23. Connoisseur of good food

(A) Greedy

(B) Glutton

(C) Gourmand

(D) Gourmet

Answer: (D)

24. The plants and vegetation of a region

(A) Flora

(B) Fauna

(C) Climate

(D) Landscape

Answer: (A)

25. A place where gambling is practiced

(A) Bar

(B) Theatre

(C) Hotel

(D) Casino

Answer: (D)

Directions (Qs. 26-30) : The first part of a sentence is provided to  you and the remaining sentence has been broken into four parts. Choose the most logical order of parts from among the given four choices to construct a correct sentence.

26. Dermatologists tell us

P : that the skin

Q : is a finely laminated coating

R : whose layered nature

S : has inspired comparisons with onions

(A) RSQP

(B) PQRS

(C) SPRQ

(D) QPRS

Answer: (B)

27. What handicapped people

P : an opportunity to pull their weight

Q : but what we are ready to offer is pity

R : and do something useful

S : want most of all is

(A) SPRQ

(B) QSPR

(C) RPQS

(D) PQRS

Answer: (A)

28. The main purpose

P : how much

Q : is to really find out

R : of this detailed test

S  : of English he knows

(A) PRQS

(B) SQPR

(C) RQPS

(D) PQSR

Answer: (C)

29. Thousands of students

P : on an all India basis

Q : from all over India

R : which are held

S : appear in the examinations

(A) RPQS

(B) QSRP

(C) PRQS

(D) SQPR

Answer: (B)

30. Religion has been used

P : both as a weapon of isolation

Q : to dull awareness

R : about real problems like health and education etc.

S : and a morphia

(A) PSQR

(B) RPQS

(C) PQRS

(D) QPSR

Answer: (A)

Directions (Q. 31-50) : Study the passages below and answer the questions that follow each passage.

PASSAGE-I

The atmosphere is a mixture of several gases. There are about ten chemical elements which remain permanently in gaseous form in the atmosphere under all natural conditions. Of these permanent gases, oxygen makes up about 21 per cent and nitrogen about 78 per cent. Several other gases, such as argon, carbon dioxide, hydrogen, neon, krypton and xenon, comprise the remaining one per cent of the volume of dry air. The amount of water vapour, and its variations in amount and distribution, is of extraordinary importance in weather changes. Atmospheric gases hold in suspension great quantities of dust, pollen, smoke and other impurities which are always present in considerable but variable amounts. The atmosphere has no definite upper limits but gradually thins until it becomes imperceptible. Until recently, it was assumed that the air above the first few miles gradually grew thinner and colder at a constant rate. It was also assumed that the upper air had little influence on weather changes. Recent studies of the upper atmosphere, currently being conducted by earth satellites and missile probings, have shown these assumptions to be incorrect. The atmosphere has three well-defined strata. The layer of the air next to the earth, which extends upward for about ten miles, is known as the troposphere. On the whole, it makes up about 75 per cent of all the weight of the atmosphere. It is the warmest part of the atmosphere because most of the solar radiation is absorbed by the earth’s surface which warms the air immediately surrounding it. A steady decrease of temperature with increasing elevation is a most striking characteristic. The upper layers are colder because of their greater distance from the earth’s surface and rapid radiation of heat into space. The temperatures within the troposphere decrease by about 3.5 degrees per 1,000 feet increase in altitude. Within the troposphere, winds and air currents distribute heat and moisture. Strong winds, called jet streams, are located at the upper levels of the troposphere. These jet streams are both complex and widespread in occurrence. They normally show a wave-shaped pattern and move from West to East at velocities of 150 mph, but velocities as high as 400 mph have been noted. The influences of changing locations and strengths of jet streams upon weather conditions and patterns are no doubt considerable. Current intensive research may eventually reveal their true significance. Above the troposphere to a height of about 50 miles is a zone called the stratosphere. The stratosphere is separated from the troposphere by a zone of uniform temperatures called the troposphere by a zone of uniform temperatures called the tropopause. Within the lower portions of the stratosphere is a layer of ozone gases which filters out most of the ultraviolet rays from the sun. The ozone layer varies with air pressure. If this zone were not there, the full blast of the sun’s ultraviolet light would burn our skins, blind our eyes, and eventually result in our destruction. Within the stratosphere, the temperature and atmospheric composition is relatively uniform. The layer upward of about 50 miles is the most fascinating but the least known of these three strata. It is called the ionosphere because it consists of electrically charged particles called ions, thrown from the sun. The ‘northern lights’ (aurora borealis) originates within this highly charged portion of the atmosphere. Its effect upon weather conditions if any, is as yet, unknown.

31. The passage supplies information that would answer which of the following questions?

(1) How do the troposphere and the stratosphere differ?

(2) How does the ionosphere affect the weather?

(3) How do earth satellites study the atmosphere?

(A) 1 only

(B) 3 only

(C) 1 and 2

(D) 1 and 3

Answer: (A)

32. According to the passage, life as we know it, exists on the earth because the atmosphere

(A) contains a layer of ozone gases.

(B) contains electrically charged particles.

(C) is warmest at the bottom.

(D) carries the ultraviolet rays of the sun.

Answer: (A)

33. The passage states that the troposphere is the warmest part of the atmosphere because it

(A) is closest to the sun.

(B) contains electrically charged particles.

(C) radiates heat into space.

(D) is warmed by the earth’s heat.

Answer: (D)

34. According to the passage, the atmosphere consists of all of the following except

(A) twenty one per cent oxygen.

(B) a definite amount of water vapour.

(C) ten permanent elements.

(D) less than one per cent of xenon.

Answer: (B)

PASSAGE-II

How many really suffer as a result of labour market problems? This is a one of the most critical yet contentious social policy questions. In many ways, our social statistics exaggerate the degree of hardship. Unemployment does not have the same dire consequences today as it did in the 1980s when most of the unemployed were primary breadwinners, when income and earnings were usually much closer to the margin of subsistence, and when there were no countervailing social programmes for those failing in the labour market. Increasing affluence, the rise of families with more than one wage earners among the unemployed, and improved social welfare protection have unquestionably mitigated the consequences of joblessness. Earnings and income data also overstate the dimensions of hardship. Among the millions with hourly earnings at or below the minimum wage level, the overwhelming majority are from multiple-earner, relatively affluent families. Most of those counted by the poverty statistics are elderly or handicapped or have family responsibilities which keep them out of the labour force, so the poverty statistics are by no means an accurate indicator of labour market pathologies. yet there are also many ways our social statistics underestimate the degree of labour-market-related hardship. The  unemployment counts exclude the millions of fully employed workers whose wages are so low that their families remain in poverty. Low wages and repeated or prolonged unemployment frequently interact to undermine the capacity for self-support. Since the number experiencing joblessness at the same time during the year is several times the number unemployed in any month, those who suffer as a result of forced idleness can equal or exceed the average annual unemployment, even though only a minority of the jobless in any month really suffer. For every person counted in the monthly unemployment tallies, there is another working part-time because of the inability to find full-time work, or else outside the labour force but warning a job. Finally, income transfers in our country have always focused on the elderly, disabled, and dependent, neglecting the needs of the working poor, so that the dramatic expansion of cash and in-kind transfers does not necessarily mean that those failing in the labour market are adequately protected. As a result of such contradictory evidence, it is uncertain whether those suffering seriously as a result of labour market problems number in the hundreds of thousands or the tens of millions, and, hence, whether high levels of joblessness can be tolerated or must be countered by job creation and economic stimulus. There is only one area of agreement in this debate that the existing poverty, employment, and earnings statistics are inadequate for their primary applications, measuring the consequences of labour market problems.

35. The author uses “labour market problems” to refer to which of the following?

(A) The overall causes of poverty.

(B) Deficiencies in the training of the work force.

(C) Trade relationships among producers of goods.

(D) Shortages of jobs providing adequate income.

Answer: (D)

36. Which of the following proposals best responds to the issues raised by the author?

(A) Innovative programmes using multiple approaches should be set up to reduce the level of unemployment.

(B) A compromise should be found between the positions of those who view joblessness as an evil greater than economic control and those who hold the opposite view.

(C) New statistical indices should be developed to measure the degree to which unemployment and inadequately paid employment cause suffering.

(D) Consideration should be given to t he ways in which statistics can act as partial causes of the phenomena that they purport to measure.

Answer: (C)

37. The author’s purpose in citing those who are repeatedly unemployed during a twelve month period is most probably to show that

(A) thee are several factors that cause the payment of low wages to some members of the labour force.

(B) unemployment statistics can underestimate the hardship resulting from joblesseness.

(C) recurrent inadequacies in the labour market can exist and can cause hardships for individual workers.

(D) the majority of those who are jobless do not suffer severe  hardship.

Answer: (C)

38. The author states that the mitigating effect of social programmes involving income transfers on the income level of low-income people is often not felt by

(A) the employed poor.

(B) dependent children in single-earner families.

(C) workers who become disabled.

(D) retired workers.

Answer: (A)

PASSAGE-III

Plato-who may have understood better what forms the mind of man that do some of our contemporaries who want their children exposed only to “real” people and everyday events-knew what intellectual experiences make for true humanity. He suggested that the future citizens of h is ideal republic begin their literary education with the telling of myths, rather than with mere facts or so called rational teachings. Even Aristotle, master of pure reason, said: “The friend of wisdom is also a friend of myth.” Modern thinkers who have studied myths and fairy tales from a philosophical or psychological viewpoint arrive at the same conclusion, regardless of their original persuasion. MirceaEliade, for one, describes these stories as “models for human behaviour by that very fact, give meaning and value to life.” Drawing on anthropological parallels, he and others suggest that myths and fairy tales were derived from, or given symbolic expression to, initiation rites or other rites of passage-such as metaphoric death of an old, inadequate self in order to be reborn on a higher plane of existence. He feels that this is why these tales meet a strongly felt need and are carriers of such deep meaning. Other investigators with a depth-psychological orientation emphasize the similarities between the fantastic events in myths and fairy tales and those in adult dreams and daydreams-the fulfillment of wishes, the wining out over all competitors, the destruction of enemies-and conclude that one attraction of this literature is its expression of that which is normally prevented from coming to awareness. There are, of course, very significant differences between fairy tales and dreams. For example, in dreams more often that not the wish fulfillment is disguised, while in fairy tales much of it is openly expressed. To a considerable degree, dreams are the result of inner pressures which have found no relief, of problems which beset a person to which he knows no solution and to which the dream finds none. The fairy tale does the opposite: it projects the relief of all pressures and not only offers ways to solve problems but promises that a “happy” solution will be found. We cannot control what goes on in our dreams. Although our inner censorship influences what we may dream, such control occurs on an unconscious level. The fairy tale, on the other hand, is very much the result of common conscious and unconscious content having been shaped by the conscious mind, not of one particular person, but the consensus of many in regard to what they view as universal human problems, and what they accept as desirable solutions. If all these elements were not present in a fairy tale, it would not be retold by generation after generation. Only if a fairy tale met the conscious and unconscious requirements of many people was it repeatedly retold and listened to with great interest. No dream of a person could arouse such persistent interest unless it was worked into a myth, as was the story of the Pharaoh’s dream as interpreted by Joseph in the Bible.

39. According to the passage, fairy tales differ from dreams in which of the following characteristics?

(1) The communal nature of their creation.

(2) Their convention of a happy ending.

(3) Their enduring general appeal.

(A) 1 only

(B) 2 only

(C) 1 and 2

(D) 1, 2 and 3

Answer: (B)

40. Which of the following best describes the author’s attitude toward fairy tales/

(A) Reluctant fascination.

(B) Wary skepticism.

(C) Scornful disapprobation.

(D) Open approval.

Answer: (A)

41. The author quotes Plato and Aristotle primarily in order to

(A) define the nature of myth.

(B) contrast their opposing points of view.

(C) support the point that myths are valuable.

(D) prove that myths originated in ancient times.

Answer: (C)

42. The author mentions all of the following as reasons for reading fairy tales except

(A) emotional catharsis.

(B) behavioural paradigm.

(C) uniqueness of experience.

(D) sublimation of aggression.

Answer: (B)

PASSAGE-IV

Ocean water plays an indispensable role in supporting lie. The great ocean basins hold about 300 million cubic miles of water. From this vast amount, about 80,000 cubic miles of water are sucked into the atmosphere each year by evaporation and returned by precipitation and drainage to the ocean. More than 24,000 cubic miles of rain descend annually upon the continents. This vast amount is required to replenish the lakes and streams, springs and water tables on which all flora and fauna are dependent. Thus, the hydrosphere permits organic existence. The hydrosphere has strange characteristics because water has properties unlike those of any other liquid. One anomaly is that water upon freezing expands by about 9 per cent, whereas most liquids contract on cooling. For this reason, ice floats on water bodies instead of sinking to the bottom. If the ice sank, the hydrosphere would soon be frozen solidly, except for a thin layer of surface melt water during the summer season. Thus, all aquatic life would be destroyed and the interchange of warm and cold currents, which moderates climate, would be notably absent. Another outstanding characteristic of water is that water has a heat capacity which is the highest of all liquids and solids except ammonia. This characteristics enables the oceans to absorb and store vast quantities of heat, thereby often preventing climatic extremes. In addition, water dissolves more substances than any other liquid. It is this characteristic which helps make oceans a great storehouse for minerals which have been washed down from the continents. In several areas of the world these minerals are being commercially exploited. Solar evaporation of salt is widely practiced, potash is extracted from the Dead Sea, and magnesium is produced from sea water along the American Gulf Coast.

43. The author’s main purpose in this passage is to

(A) describe the properties and uses of water.

(B) illustrate the importance of conserving water.

(C) explain how water is used in commerce and industry

(D) reveal the extent of the earth’s ocean masses.

Answer: (A)

44. According to the passage, fish can survive in the oceans because

(A) they do not need oxygen.

(B) ice floats.

(C) evaporation and condensation create a water cycle.

(D) there are currents in the oceans.

Answer: (B)

45. According to the passage, the hydrosphere is not

(A) responsible for all forms of life.

(B) able to modify weather.

(C) a source of natural resources.

(D) in danger of freezing over.

Answer: (D)

46. The author organizes the passage by

(A) comparison and contrast.

(B) juxtaposition of true and untrue ideas.

(C) general statements followed by examples.

(D) hypothesis and proof.

Answer: (D)

PASSAGE-V

You should not schedule meetings that last more than an hour, or 90 minutes at the most. There are tremendous diminishing returns in lengthier meetings. When you only have an hour, you don’t waste time on non-productive tangents. You also need to think about how you structure the meeting. When meeting materials arrive in your email five minutes before the meeting starts, it’s signal that the person in charge hasn’t laid the groundwork. There should be adequate time n advance for everyone to prepare for a thoughtful discussion. All meetings should have an effective close. People should think, “What are the to-dos and who’s going to do them?” Senior executives tend to think that they can accomplish this by just telling people what to do. But there’s big difference between assigning a task to be completed by next Tuesday and introducing a challenge, getting buy-in on addressing that challenge, and having everyone come together ton a way it can get done by a mutually agreed deadline. When it comes to reading, determine which information is most important to you. I’ve worked with a number of high-school students, and what I tell them about writing is just as valid for managers: begin with an outline. It keeps you from getting halfway through and not knowing where you should go from there.

47. According to the passage, which of the following statements is not true?

(1) To ensure extreme productivity, mangers should not be given any liberty of working at their own pace.

(2) Requisite preparation must be made before a meeting is called.

(3) Very less time need be given for preparation for exchange of ideas during a discussion.

(A) 1 only

(B) 1 and 2

(C) 1 and 3

(D) 2 and 3

Answer: (C)

48. As per the passage, longer meetings are

(A) more productive and meaningful.

(B) time consuming but quite beneficial.

(C) time consuming and less productive.

(D) None of these

Answer: (C)

49. According to the passage, most senior officials

(A) tends to give detailed instructions which are quite specific in nature

(B) tend to give short instructions which are often not quite specific.

(C) generally avoid passing specific instructions.

(D) try often to avoid passing relevant instructions to subordinates.

Answer: (B)

50. As per the passage, which of the following statements is/are true?

(A) While writing, managers should make a broad structure of their plans.

(B) Official meetings must be productive.

(C) Managers should remain focused on significant aspects of their jobs/plans.

(D) All of these

Answer: (D)

51. Find the average of all prime numbers between 30 and 50.

(A) 39.8

(B) 39.7

(C) 40.1

(D) 40.2

Answer: (A)

52. Three pipes A, B and C can fill a tank in 6 hours. After working at it together for 2 hours, C is closed and A and B can fill the remaining part in 7 hours. The number of hours taken by C alone to fill the tank is

(A) 10 hrs.

(B) 12 hrs.

(C) 14 hrs.

(D) 16 hrs.

Answer: (C)

53. Sound is said to travel in air at about 1100 feet per second. A man hears the axe striking the tree, 11/5 seconds after he sees it strike the tree. How far is the man from the wood chopper?

(A) 2197 ft

(B) 2420 ft

(C) 2500 ft

(D) 2629 ft

Answer: (B)

54. Two goods trains each 500 m long, are running in opposite directions on parallel tracks. Their speeds are 45 km/hr and 30 km/hr respectively. Find the time taken by he slower train to pass the driver of the faster one.

(A) 12 sec

(B) 24 sec

(C) 48 sec

(D) 60 sec

Answer: (B)

55. A boat takes 90 minutes less to travel 36 miles downstream than to travel the same distance upstream. If the speed of the boat in still water is 10 mph, the speed of the stream is

(A) 2 mph

(B) 2.5 mph

(C) 3 mph

(D) 4 mph

Answer: (A)

56. A dishonest milkman professes to sell his milk at cost price but he mixes it with water and thereby gains 25%. The percentage of water in the mixture is

(A) 4%

(B) 6.5%

(C) 20%

(D) 25%

Answer: (C)

57. The compound interest on a certain sum for 2 years at 10% per annum is Rs 525. The simple interest on the same sum for double the time at half the rate per cent per annum is

(A) Rs 400

(B) Rs 500

(C) Rs 600

(D) Rs 800

Answer: (B)

58. On dividing a certain number by 342, we get 47 as the remainder. If the same number is divided by 18, what will be remainder?

(A) 9

(B) 13

(C) 11

(D) 15

Answer: (C)

59. Find the smallest number of five digits exactly divisible by 16, 24, 36 and 54.

(A) 10364

(B) 10368

(C) 10366

(D) 10362

Answer: (B)

60. If the sum of two numbers is 42 and their product is 437, then find the absolute difference between the numbers.

(A) 4

(B) 5

(C) 6

(D) 3

Answer: (A)

Directions (Qs. 61-65): Read the given information carefully to answer these questions.

A teacher’s Training Institute has to conduct a refresher course for teachers of seven different subjects History, Geography, Political Science, Hindi, Sanskrit, Music and English from 12th December to 19th December.

(i) The course should start with Geography.

(ii) 13th December being a Sunday, should be a holiday.

(iii) Music should be on the day previous to English.

(iv) The course should end with History.

(v) Political Science should be immediately after the holiday. Sanskrit follows Political Science.

(vi) There should be a gap of one day between Sanskrit and English and between Music and Hindi.

61. Which subject is followed by Music?

(A) English

(B) Geography

(C) Political Science

(D) Sanskrit

Answer: (A)

62. How many days gap is there between Music and Political Science?

(A) One

(B) Two

(C) Three

(D) Four

Answer: (A)

63. Which subject precedes History?

(A) Sanskrit

(B) English

(C) Political Science

(D) Hindi

Answer: (D)

64. Which subject will be on Tuesday?

(A) History

(B) English

(C) Sanskrit

(D) None of these

Answer: (C)

65. Which refresher course will start three days before English subject?

(A) Geography

(B) History

(C) Political Science

(D) Sanskrit

Answer: (C)

Directions (Qs. 66-70): Each of these questions has an assertion (A) and a reason (R). Mark the answer as

(A) if both ‘A’ and ‘R’ are true and ‘R’ is the correct explanation of ‘A’.

(B) if both ‘A’ and ‘R’ and true and ‘R’ is not the correct explanation of ‘A’.

(C) if ‘A’ is true but ‘R’ is false.

(D) if ‘A’ is false but ‘R’ is true.

66. Assertion (A) : The steam engine was invented by James Watt.

Reason (R): There was a problem of taking out water from flooded mines.

Answer: (B)

67. Assertion (A) : In India, the judiciary is independent of the executive.

Reason (R): Judiciary favours the government and helps in the implementation of its plans.

Answer: (C)

68. Assertion (A): Increase in carbon dioxide would melt polar ice.

Reason (R): Global temperature would rise.

Answer: (A)

69. Assertion (A): Graphite is slippery and used as a lubricant.

Reason (R): Graphite has free electrons.

Answer: (B)

70. Assertion (A): Tamil Nadu gets most of the rainfall in winter.

Reason (R): Tamil Nadu gets rainfall from retreating monsoons.

Answer: (A)

Directions (Qs. 71-75): Each of these questions has a statement followed by two conclusions I and II. Consider the statement and the following conclusions. Decide which of the conclusions follows from the statement. Mark the answer as

(A) if conclusion I follows.

(B) if conclusion II follows.

(C) if either conclusion I or II follows.

(D) if neither conclusion I nor II follows.

71. Statement:

A man must be wise to be a good .wrangler Good wranglers are talkative and boring.

Conclusions:

(I) All the wise persons are boring.

  1. All the wise persons are good wranglers.

Answer: (D)

72. Statement:

Fortune favours the brave.

Conclusions:

(I) Risks are necessary for success.

(II) Cowards die many times before their death.

Answer: (C)

73. Statement:

It is almost impossible to survive and prosper in this world without sacrificing ethics and morality.

Conclusions:

(I) World appreciates some concepts but may not uphold it.

(II) Concept of ethics and morality are not practicable in life.

Answer: (A)

74. Statements:

The best way to escape from a problem is to solve it.

Conclusions:

(I) Your life will be dull if you do not face a problem.

(II) To escape from problems, you should always have some solutions with you.

Answer: (B)

75. Statements:

The best evidence of India’s glorious past is the growing popularity of Ayurvedic medicines in the West.

Conclusions:

(I) Ayurvedic medicines are not popular in India.

(II) Allopathic medicines are more popular in India.

Answer: (D)

Directions (Qs. 76-78) : Find the odd one out.

76. 445, 221, 109, 46, 25, 11, 4

(A) 25

(B) 46

(C) 109

(D) 221

Answer: (B)

77. 3, 2, 8, 9, 13, 22, 18, 32, 23, 42

(A) 22

(B) 13

(C) 9

(D) 8

Answer: (C)

78. 1, 5, 9, 15, 25, 37, 49

(A) 25

(B) 37

(C) 9

(D) 15

Answer: (D)

Directions (Qs. 79 and 80): In each of these questions four words are given. Of these, which three are alike and the fourth one is different. Choose the odd one.

79. 

(A) Debit

(B) Deposit

(C) Deduction

(D) Withdrawal

Answer: (B)

80. 

(A) Green

(B) Indigo

(C) Pink

(D) Violet

Answer: (A)

81. In a certain code language, ROUTINE is written as VMRGFLI. How will CRUELTY be written in that code language?

(A) BGOVFIX

(B) VPCVZRL

(C) CPVCZRL

(D) WPCVZRL

Answer: (B)

82. If blue means green, green means white, white means yellow, yellow means black, black means red and red means brown, then what is the colour of milk?

(A) Black

(B) White

(C) Yellow

(D) Green

Answer: (C)

83. A and B are brothers, C and D are sister. A’s son is D’s brother. How is B related to C?

(A) Father

(B) Brother

(C) Grandfather

(D) Uncle

Answer: (D)

84. In a cricket team, Dhoni is taller than Virat but not as tall as Raina, Rohit is shorter than Dhoni but taller than Shikhar. Who among them is the shortest?

(A) Dhoni

(B) Virat

(C) Shikhar

(D) Cannot be determined

Answer: (D)

85. Arrange the following words according to the English dictionary arrangement.

(1) Epitaxy    (2) Episode

(3) Epigene    (4) Epitome

(5) Epilogue

(A) 1, 2, 3, 4, 5

(B) 3, 2, 1, 5, 4

(C) 3, 5, 2, 1, 4

(D) 1, 3, 2, 5, 4

Answer: (C)

86. India imports good quality raw wool in a major way from which of the following countries?

(A) England

(B) Sri Lanka

(C) Australia

(D) Germany

Answer: (C)

87. Varuna D Jani is a well-known Indian

(A) fashion designer

(B) ramp model

(C) film actress

(D) jewellery designer

Answer: (D)

88. The super brand ‘Louis Vuitton’ is well-known for its

(A) sports shoes

(B) backpacks

(C) bags

(D) cosmetics

Answer: (C)

89. Which of the following is a well-known synthetic fibre produced in India?

(A) Rayon

(B) Terene

(C) Nylon

(D) All of these

Answer: (A)

90. Who among the following popular Indian film stars, was the showstopper for designer Ashish N Soni’s grand finale in the Wills Lifestyle India Fashion Week held in October 2013?

(A) Anil Kapoor

(B) Salman Khan

(C) Shahrukh Khan

(D) Akshay Kumar

Answer: (A)

91. Popular fashion labels Abraham and Thakore (A&T) collaborated with EKAYA to create a line of Banarasi

(A) Saris

(B) Suit-Dupatta

(C) Lehenga-Choli

(D) None of these

Answer: (A)

92. ‘Akkriti, Rangmanch and Trishaa’, the popular range of women’s apparels is form

(A) Pantaloons

(B) Big Bazaar

(C) Max

(D) None of these

Answer: (A)

93. Kudankulam nuclear power plant in coastal Tamil Nadu is a ………. power generating unit in India.

(A) 800 MW

(B) 1200 MW

(C) 1000 MW

(D) 1500 MW

Answer: (C)

94. The study of coins and medals is known as

(A) Mycology

(B) Philately

(C) Calisthenics

(D) Numismatics

Answer: (D)

95. Famous book ‘A Suitable Boy’ has been written by whom?

(A) Arundhati Roy

(B) Jhumpa Lahiri

(C) R. K. Narayan

(D) Vikram Seth

Answer: (D)

96. World Health Day is observed on which day?

(A) 05 June

(B) 07 April

(C) 15 March

(D) 10 December

Answer: (B)

97. M. C. Mary Kom is associated with which sport?

(A) Chess

(B) Cricket

(C) Boxing

(D) Hockey

Answer: (C)

98. ECGC stands for

(A) Export Corporation and Guarantee Credit of India Ltd.

(B) Electronic Corporation and General Credit of India Ltd.

(C) Export Credit and Guarantee Corporation of India Ltd.

(D) Export Credit and General Corporation of India Ltd.

Answer: (C)

99. District Judges are appointed by whom?

(A) Chief Minister of the state

(B) Chief Justice of the High Court

(C) Governor of the state

(D) Chief Justice of Supreme Court

Answer: (C)

100. “Jnanpith Award” is given for excellence in which field?

(A) Sports

(B) Music

(C) Literature

(D) Government Service

Answer: (C)

101. Central Drug Research Institute is located at which place?

(A) Lucknow

(B) New Delhi

(C) Chennai

(D) Jaipur

Answer: (A)

102. Which of the following is known as ‘City of Festivals’?

(A) Madurai

(B) Mathura

(C) Varanasi

(D) Udaipur

Answer: (A)

103. National Disaster Management Authority has been established by the government under the Ministry of

(A) Home Affairs

(B) Defence

(C) Urban Development

(D) Human Resource Development

Answer: (D)

104. The headquarters of European Union is located at

(A) Rome (Italy)

(B) Paris (France)

(C) Amsterdam (Netherlands)

(D) Brussels (Belgium)

Answer: (C)

105. In economic terms, ‘Service Sector’ comes under which of the following sector(s)?

(A) Primary

(B) Secondary

(C) Teritiary

(D) Both Primary and Secondary

Answer: (C)

106. From 1906 onwards, the exports of Indian yarn to China declined, so industrialists in India began shifting from yarn to

(A) Steel

(B) Cloth

(C) Agriculture

(D) Leather

Answer: (B)

107. Indian cricketers MS Dhoni has launched his own signature brand of ………… named ‘7 by MS DHONI’.

(A) Sun Glasses

(B) Perfumes

(C) Clothes

(D) Wrist Watches

Answer: (B)

108. Volcanic mountain ‘Mt. Kilimanjaro’ is located in which Country?

(A) Japan

(B) USA

(C) Indonesia

(D) Tanzania

Answer: (D)

109. Which one of the following temple valley has recently witnessed the natural devastation of cloudburst, flood and landslide?

(A) Amarnath

(B) Kedarnath

(C) Pashupatinath

(D) Tungnath

Answer: (B)

110. Which of the following banks in India introduced the ‘Rubyx’ debit card promoting it as inspired by the gemstone ‘Ruby’?

(A) YES Bank

(B) ICICI

(C) AXIS

(D) HDFC

Answer: (B)

Directions (Qs. 111-120) : In each of these questions, choose the option that best captures the essence of the text.

111. The $300 pair of designer jeans is now, courtesy of the recession, the $200 pair of designer jeans. “It was all just a fad,” said Jeff Rudes, a founder of the hot denim label J Brand Jeans and an astute observer of the suspiciously inflated prices of fashion’s most eternally reinvented staple. Like any commodity that becomes over-priced, there eventually comes a market correction. And denim’s day of reckoning was long overdue.

(A) Jeff Rudes had been wary of the suspiciously inflated prices of jeans and had anticipated their fall owing to the recession.

(B) As in the case of any product that becomes overpriced, recession brought about a correction in the prices of designer jeans that are now priced at a reasonable $200 a pair.

(C) The fad of designer jeans at $300 a pair has been corrected by the recession and jeans are now available for just $200.

(D) Recession or no recession, branded jeans continue to sell-earlier $300 a pair but now at a recession-reduced $200 a pair.

Answer: (B)

112. A photochromic lens automatically adjusts to the brightness of the sun. Silver particles embedded in the lens material are triggered by UV light to darken when solar radiation increases and lighten when sunlight fades. The result is that your glasses have a much wider range of application into lower light conditions; overcast, fog, morning and early evening. This process adjusts quickly and never wears out. If you go out and use it in a wide variety of light conditions with the same pair of glasses, photochromicity is highly desirable.

(A) For someone who is exposed to different light conditions with the same pair of glasses, photochromic lenses are desirable, as they automatically adjust to the various light conditions.

(B) Be it in the brightness of the sun or in lower light conditions such as overcast, fog, morning and early evening, photochromic glasses are the best bet for your eyes.

(C) Photochromic glasses are essential for healthy eyes as they protect them from UV rays by darkening in bright sunlight.

(D) In order to have a much wide range of application into brighter or lower light, conditions, it is essential to use photochromic lenses in our glasses..

Answer: (B)

113. Since effective marketing leads to increased sales, the art of marketing has markedly developed due to technological advancements during the past five decades and as a result, attracting people’s attention has become increasingly feasible, and even fashionable.

(A) Due to technological developments, it has become quite easy to market your products and this is a part of fashion these days.

(B) Marketing has new become more effective due to technological developments during the past 50 years.

(C) It is now easy to draw people’s attention towards you product and this has resulted in marketing becoming much easier and even fashionable.

(D) As sales increase due to marketing, during the last fifty years, technology has made it easy to attract people’s attention and market your products.

Answer: (B)

114. Social experts point out that people who stay in nuclear families feel more aloof and lonely and are not able to cope with stressful situations of modern life and, in extreme cases, it leads to spontaneous drastic reactions like suicides and even murders.

(A) Staying in a nuclear family makes a person lonely and when he is not able to cope with stress, he may even commit murders or suicides.

(B) One should not stay in a nuclear family as this makes a person aloof and lonely and he is not able to deal with stress.

(C) According to social experts nuclear family members become lonely and aloof and find it difficult to cope with stress of modern life, while in extreme cases it may even lead to suicides or committing a murder.

(D) As per social experts, nuclear families make people lonely and aloof and they may commit murders or suicides as they cannot cope with stressful situations.

Answer: (C)

115. Few would argue that the problem to put an economy as complex as ours on the path of sustained growth is replete with umpteen challenges, but the country has no dearth of able men to lead the nation to prosperity, the moot point being the political will to address core issues involved.

(A) Though we have a number of problems facing our country, yet if there is a political will, we can develop our economy

(B) Unless we find solutions to certain core issues of our nation, it would not be possible to develop our economy adequately.

(C) India has a large number of competent people who can lead our country and also develop our economy as expected.

(D) Though we agree that there are a number of challenges to ensure a sustained growth of our economy, yet if we have the political will, there are able people who can do it.

Answer: (D)

116. India is one of the biggest exporters of knowledge workers, but we do not have the needed mechanism to utilize this asset for our own development and there is a conspicuous absence of local management techniques to enthuse Indian companies to outperforms others.

(A) We have enough trained and talented workforce but lack indigenous management techniques to overtake others.

(B) India has not been able to utilize its own manpower for its development presently.

(C) India should utilize its knowledge workers for its own development and, with indigenous management techniques enthuse Indian workers to overtake others.

(D) Despite having considerable trained manpower, India has not been able to develop its own management techniques to outperform others in the fied.

Answer: (A)

117. Big lenders have seen a surge in retain loan offtake over the seven months of the fiscal. Rising salaries coupled with pent-up demand for new homes and cars have given the desired short in the arm to retail lending by banks across the country. For some like HDFC Bank and AXIS Bank, October has been the best month in terms of retail assets growth. Others such as ICICI Bank and Bank of Baroda have also witnessed significant improvement in credit offtake of the back of rising home and auto loans, said bankers.

(A) There has been an upsurge in the retail loans market this fiscal with October being the best month for most leading banks such as HDFC, ICICI etc.

(B) October witnessed peaking of the retail bank loans market this fiscal, the revival made possible by rising salaries leading to an increased demand for home and auto loans across the country.

(C) HDFC, ICICI, AXIS, BoB are the leading banks that collectively led the revival the home and auto loans market across the country, with October as the best month.

(D) After a long period of lull, October saw the revival of retail loan markets as evidenced by the performance of HDFC, AXIS, ICICI and other leading banks across the country.

Answer: (B)

118. In what can be seen as a positive impact of global warming, large blooms of tiny marine plants called “phytoplankton”, that can absorb carbon dioxide from the atmosphere, are flourishing in the area opened up by massive ice melting in Antarctica. Without ice cover, the water gets exposed to light and circulation of nutrients that help the plants move in and take up extra amounts of carbon dioxide, becoming what scientists call a “carbon sink”. This is really massive-it’s like having a new forest the size of Wales.” said Professor Llyod Peck, a near-shore marine biologist from the British Antarctic Survey.

(A) An exciting fallout of the melting of ice in Antarctica due to global warming is the creation of ‘Carbon sinks’ by blooming marine plants.

(B) The melting of ice in the Antarctic region due to global warming  has resulted in the blooming of tiny marine plants called phytoplankton that absorb massive quantities of carbon dioxide.

(C) Global warming has resulted in some benefits as well, in the form of growth of vegetation in the hitherto barren Antarctic region.

(D) The discovery of phytoplankton blooms in the Antarctic waters has got the scientist excited because it is a positive fallout of global warming.

Answer: (A)

119. The Internet is about to get more accessible for millions worldwide with the imminent approval of a new multilingual address system that uses Asian and Arabic scripts, a global regulator said on Monday. The Internet Corporation for Assigned Names and Numbers (ICANN) said it would declare an end to the exclusive uses of Latin characters for website addresses on Friday the final day of its sixday conference in Seoul. “This is the biggest change technically to the Internet since it was invented 40 years ago,” Peter Dengate Thrush, Chairman of the ICANN board in charge of reviewing the change told a press conference.

(A) The ICANN board has plans to abolish exclusive use of latin characters in the addresses and introduce both Arabic and Asian scripts to make Internet more broad-based.

(B) Multilingual internet addresses with Chinese, Arabic, Korean and Japanese characters would soon be a reality as the ICANN board has approved this move.

(C) Exclusive use of Latin American characters in internet addresses over the last 40 years has hindered the growth of internet in Asian and Arabic countries.

(D) Internet is to get more accessible soon with the move by global regulator ICANN to introduce a multilingual address system that uses Asian and Arabic scripts, instead of just Latin characters.

Answer: (D)

120. The enrolment of first-time graduate students from India has registered a 16 per cent decline in comparison to last year while that of China has increased by the same level, says a latest report. “First-time enrolment of students increased by 16 per cent from China and by 22 per cent from the Middle East. However, there was a 16 per cent decline from India and 13 per cent decline from South Korea,” the Council of Graduate Schools (CGS) has said in its report. India sends one of the largest numbers of international students to the US for higher studies along with China and South Korea and the sharp drop of 16 per cent, follows two years of modest decline, two per cent in 2008 and eight per cent in 2007. The report also pointed that there was no growth in first-time enrolment of international students in the US graduate schools from 2008 to 2009.

(A) The overall number of first-time enrolment of international students in US graduate schools has remained static with the Middle East showing growth and Asian countries reflecting a mixed trend.

(B) India and South Korea are gradually veering away from sending its students to the US for higher studies, whereas China, North Korea and the Middle East are sending higher numbers thereby even out the overall numbers.

(C) The CGS has published a report to assess the trends in first-time enrolment of international student populations in graduate schools in the US.

(D) India, China and South Korea together account for a sizeable contingent of international students enrolling in US graduate schools for the first-time, and help to keep the overall numbers stable even if there is a decline in numbes from other countries.

Answer: (A)

Directions (Qs. 121-135): Read the following situations and answer the questions given at the end of each situation on the basis of information provided.

SITUATION-I

Indian Chief Executive Officers (CEOs) have emerged as the most optimistic globally as far as improvement in the global economy this year and long-term revenue prospects of their own businesses are concerned. However, the growing Indian market is “decelerating”, a survey of 1,330 CEOs across 68 countries by Pricewaterhouse Coopers’ (PwC) has found. India is decelerating in comparison with Brazil, Indonesia and South Africa, the PwC survey released here last night on the sidelines of the World Economic Forum’s (WEF’s) annual meeting showed. The survey identified China, Mexico, Russia, Saudi Arabia, South Korea and Turkey as decelerating along with India. In the long term, 97% of Indian CEOs were found to be “somewhat or very confident” of revenue growth over the next three years, out of which 85% said they are very confident, making them the most optimistic in the world. About global economy, 38% of Indian CEOs anticipate improvement in the global economy in 2013, making them the most optimistic across the world. Globally, 36% of CEOs surveyed said they were “very confident” of their company’s growth prospects in 2013, down from 40% last year. About the overall economic scenario, 28% expect further downtrend in the global economy this year, while only 18% expect an improvement and more than 50% expect it to remain same. However, the confidence level has improved on this front, as 48% of CEOs expected a decline in the global economic scenario last year. Finding the right talent for businesses, lack of stability in the markets and growing regulatory and tax burdens are some of the problems faced by CEOs, the report said.

121. Which of the following is an important difficulty encountered by Indian CEOs?

(A) Problems concerning taxations.

(B) Procuring competent manpower.

(C) Market fluctuations.

(D) All of these

Answer: (D)

122. As per the situation, which of the following statements is not true?

(1) Economy of South Africa is performing better than that of India.

(2) Economy of South Korea is accelerating.

(3) Chinese economy is decelerating.

(A) 1 only

(B) 3 only

(C) 2 only

(D) All of these

Answer: (C)

123. With regard to revenue growth in the near future, most Indian CEO’s are

(A) quite pessimistic.

(B) not much concerned.

(C) quite optimistic.

(D) extremely uncertain.

Answer: (C)

124. When compared with India, economy of which of the following countries is also not accelerating as of now?

(A) Turkey

(B) Russia

(C) South Korea

(D) All of these

Answer: (D)

SITUATION-II

The Government is being antediluvian by raising the import duty on gold. The official reasoning being that higher taxes will make gold imports

more costly and tame India’s legendary appetite for the yellow metal. What will most likely happen is supplies will move to unofficial channels, depriving the government the revenue it is deriving now from legitimate imports. All this will do little to arrest demand” India imported more gold after the customs duty was raised less than e year ago. Gold exchange traded funds were launched in India on the premise that the underlying asset-typically one gram of gold-would be available for redemption at any point by its owner. By allowing gold funds to lend some of their bullion to banks, holders of paper gold will move to- fractional ownership, where the underlying asset does not

reflect the market price. The 1962 gold control order banning ownership of coins and bans pushed the entire trade underground. From 1992, when the

government re-allowed official imports, demand has been climbing steadily, &s India keeps buying more gold than any other country despite a 12-year

international bull run in bullion prices. A forward-looking solution would have looked at providing Indians a credible inflation hedge that can ease the

pressure to buy gold and expand financial intermediation to the countryside where most of the people have no option but to salt away their savings in jewellery

125. As per the situation, due to rise in duty on gold, the demand of gold will

(A) decrease drastically

(B) increase substantially.

(C) not decrease much.

(D) remain same.

Answer: (C)

126. In the past, when Government has allowed imports of gold, the demand has

(A) suddenly declined.

(B) declined slowly.

(C) risen suddenly.

(D) rise slowly.

Answer: (D)

127. When compared with other countries, the demand to buy gold in India has been

(A) at par

(B) quite high

(C) fairly low

(D) None of these

Answer: (B)

128. As per the situation, restrictions and raising duty on imports of gold leads to

(A) more tax collections.

(B) unauthorized trading.

(C) increased legal transaction.

(D) All of these

Answer: (B)

SITUATION-III

After ruling the mass glucose segment, Parle is tilting its portfolio towards premium biscuits, with a special focus on the cream segment. With growth

rates at 25 per cent in the premium cream segment, Parle’s nearest competitor, Britannia, dominates with a 30 per cent share, along with new competitors such as Kraft Foods (Oreo) and ITC also rapidly gaining share in the segment. Getting volumes and market share at the premium end of the cream segment is now priority for the Mumbai-based company. Unlike the glucose segment, it is yet to make a mark in growing segments such as cream biscuits. Competition has been increasing with new players such as ITC and Kraft Foods increasing their offerings in this segment. Today Parle has a 25 per cent share in the cream segment while new players such as ITC have already cornered 15 per cent share along with Kraft Foods’ Oreo brand garnering 10 per cent share. Parle has recently re-launched a premium glucose variant with new packaging. The purpose is to get better margins in the glucose segment. Despite the slowdown, biscuit as a category has been relatively unaffected even at the premium end. There continues to be good growth tor biscuits and thankfully profitability has not been affected. Even prices have been kept on hold despite input cost inflation. Major ingredients such as wheat flour, edible oil and sugar used in biscuits have stabilised in the past year. Prices of ingredients used in biscuits have remained stable and we are not looking forward to raising prices.

129. Parle wants to increase business in the cream biscuit segment due to

(A) not much competition.

(B) low cost of production.

(C) high growth in this segment.

(D) None of these

Answer: (C)

130. In the pas-t, which of the following has been most popular brand for making glucose biscuits?

(A) Britannia

(B) Kraft Foods

(C) Parle

(D) ITC

Answer: (C)

131. Currently which of the following has the second largest share in the cream biscuit segment?

(A) Parle

(B) ITC

(C) Kraft Food

(D) None of these

Answer: (A)

132. Owing to the slowdown in the recent past, the demand for

(A) biscuit industry has gone down considerably.

(B) premier biscuits has reduced somewhat.

(C) all kinds of biscuits has not changed much.

(D) all kinds of biscuits has gone up a great deal.

Answer: (C)

SITUATION-IV

Ashok Leyland Ltd today announced the launch of its intermediate commercial range of vehicle Boss in the Andhra Pradesh market and said that it will go pan-India with the new range in a phased manner after consolidating its presence in the Southern and Western regions. The intermediate range of

commercial vehicles, which span vehicles with carrying capacity of 8 to 16 tonnes, has grown from a volume of about 28,000 commercial vehicles per annum to 56,000 CVs per annum over the past five years. “We are looking at growing in this segment with the launch of Boss for haulage in 9.6, 11.9 and 12.9 tonnes. In a very short span of the Boss launch in southern states, we have gained market share. We expect this will go up as we initially consolidate our presence in the four southern cities and then western region before going pan-India,” Managing Director of Ashok Leyland, said. The market for commercial vehicle segment continues to be under severe pressure. The growth of heavy commercial vehicle segment, which has  16 tonnes and above, and the intermediate segment have contracted in the last two years from about 3,30,000 to about 2,50,000 units. The company manufactures the Boss range from its Pantnagar facility in Uttarakhand, which can currently make 2,000 vehicles a month.

133. During the past five years, intermediate CV segment has shown

(A) not much change.

(B) hardly any increase.

(C) considerable increase.

(D) remarkable decrease.

Answer: (C)

134. Presently, Ashok Leyland has how many manufacturing units of Southern India for Boss vehicle?

(A) Two

(B) Three

(C) Only One

(D) None of these

Answer: (D)

135. As per the passage, which of the following statements is not true?

(A) During the past two years, market for heavy and intermediate CVs has gone down.

(B) Ashok Leyland does not want to launch Boss Vehicle immediately on all-India basis.

(C) Ashok Leyland is not eyeing a bigger share of intermediate CV segment.

(D) All of these

Answer: (C)

Directions (Qs. 136-150) : Each of these questions has a statement based on the preceding passage. Evaluate each statement and mark answer as

(A) if the statement is a Major Objective in making the decision: one of the goals sought by the decision maker.

(B) if the statement is a Major Factor in making the decision: an aspect of the problem, specifically mentioned in the passage, which fundamentally affects and/or determines the decision.

(C) if the statement is a Minor Factor in making the decision: a less important element bearing on or affecting a Major Factor, rather than a Major Objective directly.

(D) if the statement is a Major Assumption in making the decision: a projection or supposition arrived at by the decision maker before considering the factor and alternative.

PASSAGE-I

Morgan Stanley on Monday became the second large global giant to exit India’s crowded and barely profitable mutual fund industry when it agreed to sell its business to HDFC, the country’s biggest mutual fund manager. HDFC Mutual Fund (MF), with assets of Rs 1.03 lakh crore, agreed to buy all eight schemes of Morgan Stanley with combined assets of Rs 3,290 crore. The purchase is expected to help the fund widen the gap with Reliance, the second biggest mutual fund house and consolidate its position at the top of the industry. Reliance has assets worth Rs 93,249 crore. Morgan was the first global giant to launch a mutual fund in India in 1994 after liberalisation but its performance in the country has been rather lacklustre. Its asset size is

small by international and Indian standards and like Fidelity it has been unable to keep pace with the growth of Indian mutual funds such as HDFC MF, Reliance MF, ICICI Pru, UTI MF and Birla Sunlife which between them control over 5070 of the industry’s size. The fund posted losses in both 2011 and 2012. “The mutual fund and insurance industry must go through consolidation. Small funds are not viable and more and more people are beginning to sense that. The opportunity cropped up as Morgan Stanley approached us,” Chairman HDFC told. Tough business conditions are forcing many asset management companies (AMCs) to either rope in strategic partners or exit the business completely. India has about 44 mutual fund houses with numerous schemes and they compete for investors’ money in the main cities of Mumbai and Delhi. The proportion of small savers investing in these schemes is not very high and the funds depend upon cash-rich companies and high net worth individuals for a bulk of their investments. “The consolidation in the industry is likely to continue as industry faces tough times, we believe only those companies can survive which have a strong distribution reach,” said CEO of a mutual fund AMC, who did not want to be identified.

136. The purchase is expected to help the fund widen the gap with Reliance.

Answer: (A)

137. The asset size of Morgan Stanley is small by international and Indian Standards.

Answer: (C)

138. Small funds are not viable and more and more people are beginning to sense that.

Answer: (D)

139. Only those companies can survive which have a strong distribution reach.

Answer: (B)

140. Asset management companies are facing tough business conditions.

Answer: (C)

PASSAGE-II

ING Groep NV, the biggest Dutch financial-services company, is said to be seeking a buyer for its 43% stake in ING Vysya Bank, as the prospects of limited purpose banking in India and tough competition in retail market make it rethink its local strategy, five people familiar with the thinking said. ING, which has been selling assets across the Asian region and some in Europe itself to repay the Dutch government for bailing it out fro*r the 2008 credit crisis, may exit the domestic banking business comprising retail, corporate and treasury, to focus on corporate banking, they said” The group, which also has to bolster capital to meet the Basel III regulations, may get at least $600 million at current market prices, or even more for the stake depending on the transaction. There is no certainty that a deal will happen. Although ING Vysya may be an attractive asset for every private see tor bank because of its clean books, 575 branches and loyal customers Kotak Mahindra Bank seems to be best placed to benefit from the acquisition of ING Vysya, say analysts. “It is a very good business and it (ING Vysya) provides Kotak the opportunity to scale up,” said chief mentor BMR & Associates, an advisory firm. Although Kotak’s market value is about six times that of ING Vysya, Kotak’s loan assets is about Rs 50,539 crore, compared with ING’s Rs 33,575 crore, regulatory filings show. ING’s Rs 40,000 crore of deposits, of which a third is low cost, and its customer loyalty may be the most attractive part. But Kotak said it is not negotiating for a takeover. “We have not been approached for purchase of shares of ING Group in ING Vysya Bank,”  said a Kotak Mahindra Group spokesman in an emailresponse. “We have had no negotiations with officials of ING Vysya Bank on this matter.” For Kotak, it might make sense to go for a stock-swap deal since it could achieve twin objectives of the management, said one of the persons familiar with the thinking. There will be no cash outflow, and at the same time help founder Uday Kotak to reduce his stake in the bank to meet regulations. The Reserve Bank of India last June directed. Uday Kotak to lower his stake in the bank to 10% over the next eight years. It is at 44% now, filings show. International banks in India are redrawing their strategy as the industry goes through tough capital requirements after the credit crisis. Institutions such as JPMorgan Chase & Co have decided to remain a corporate and investment banking company in India, and others such as Barclays are moving toward that, shedding retail. The Reserve Bank of India’s decision to possibly mandate local incorporation may lead to further changes.

141. ING Groep NV, the biggest Dutch financial services company perceives that there is tough competition in retail market.

Answer: (B)

142. ING will focus on Corporate Banking.

Answer: (A)

143. The group may get at least $600 million at – current market price”

Answer: (D)

144. ING Vysya has 515 branches.

Answer: (B)

145. The industry in India is going through tough requirements after the credit crisis.

Answer: (C)

PASSAGE-III

A slowing economy, rising fuel prices and high taxes hit Indian aviation in 2012. Strikes at Air India and a bleeding Kingfisher added to the heat because foreign airlines would not pick up stakes in cash-strapped Indian carriers unless steps are taken to stem high costs of aviation operations in India, International Air Transport Association (IATA) chief Tony Tyler said. “No, I don’t think it (allowing foreign airlines to invest in Indian carriers) is a game changer but it is a good thing,” said Tyler. “But it will not solve the problems of Indian aviation. It is a step in the right direction but not the panacea that Some believe it is.” “As long as high taxes prevail, high airport costs and congestion, and poorly developed air navigation (services) means more congestion, high cost of operations exist, you are not going to get a lot of people to invest in airlines,” the director-general and CEO of IATA said. Observing that there were restrictions on investing in airlines around the world, which was “a problem for the industry”, Tyler said “any move that we see in liberalizing is a good thing.” “But unless conditions in India are improved for airlines, you are not going to see a flood of foreign carriers coming into the industry. Because foreign capital needs a return just as anywhere else.” he added.

146. Foreign capital should be invested in Indian aviation.

Answer: (A)

147. There is a slowing Indian economy.

Answer: (B)

148. There were strikes at Air India.

Answer: (B)

149. Foreign airlines would pick up stakes in Indian carriers.

Answer: (D)

150. There is a poorly developed air navigation leading to more congestion.

Answer: (C)