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Reasoning Ability Quiz 150 for IBPS PO

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1. Statements: The Reserve Bank of India has the power to issue the currency notes in India. There has always been the dilemma among the people that since the Reserve Bank of India has the power to issue the currency notes then it should print the excess notes and distribute it among the people which will help in reducing the poverty in the country. What could be the main reason that the Reserve Bank of India not printing the excess currency notes.
I) Excess currency notes will increase the inflation in the country.
II) The Reserve Bank of India is not allowed to print the currency notes.
III) Excess currency will devaluate the value of the Indian rupee in the international market.
IV) Excess supply of money will reduce the amount of commodity in the market.
1)  Only I 2) Only I and II 3)  Only I, II and III 4)  Only I, III and IV 5)  All I, II, III and IV

2. Statements: The Prime Lending Rate is the rate of interest at which the commercial banks gives loan to the credit worthy customers or the prime customers. Which among the following is/are the  effect of  the prime lending rates introduced by the banks?
I) The prime lending rate helps in maintaining the old customers with the bank.
II) Prime lending rate helps in reduction of the risk with the banks.
III) Prime lending rate helps in improving the ratings of the bank.
IV) Prime lending rate helps in maintaining the transparency in the market.
1)  Only I 2) Only I and II 3)  Only II 4)  Only III 5)  Only I, II and III+

3. Statements: Afzal Guru was hanged in the early hours of February, 9. The date of execution was fixed only the previous day, but the authorities choose no quicker means of communication than speed post to inform his family in spore of the final decision. The idea seemed to be that no one should know, react or protest. Afzal himself was given no chance to challenge the President's rejection, through it is open to judicial review. Which among the following assumptions is implicit in the following statements ?
1) The Government did not want the family of Afzal Guru to meet him one last time.
2) The Government of India was worried about the protest and violence in the Kashmir Valley.
3) The Government did not want to waste time on the terrorist like Afzal Guru.
4) The Constitution of India does not allow that.
5) None of these

4. Statements: The return to office of an elected Prime Minister Nawaz Sharif in Pakistan after the decade–and-a-half after he was deposed by the military is an important development for India as well as the international community, which have stakes in the progress of democracy in Pakistan. Which among the following conclusion supports the statement ?
1) Consolidation of democracy in Pakistan offers hope of arresting its decline towards extremism and state failure.
2) It will help in controlling the menace of terrorism.
3)  It will help in strengthening pluralism.
4)It will help in changing the equation between the armed forces and the civilian authority and stabilising the polity.
5)  All of the above

5. Statements: The sex ratio of India in the census of India 2011 has reduced to 940 females / 1000 males. Despite constant efforts  of  the government of  India and the  non government organisations  the sex ratio  is not  improving  and  the conditions of the women is degrading day-by-day in India. What course of action government should take in order to improve the sex ratio in India ?
A) The government should make strict laws on the sex determination test before the birth of the child.
B) Female infanticide and feticide should be banned.
C) The government should work upon to increase the female education in India.
D) More women reservation should be provided in India in all the sectors.
1)  Only A 2) Only A, B and C 3) Only B and D 4) Only C and D 5)  All of these

Directions (Q. 6-10): Study the following information carefully to answer the questions given below: The announcement of a new BRICS bank displays the desire of emerging economics to move away from Washington D. C style lending institutions. Much work lies ahead for the creators of these new multilateral financial institutions before the first loan can be made the BRICS countries are four largest economies in the developing world. They  have economic heft but do they have much in common. The serious challenges for BRICS Bank, like OPEC, their economic fundamentals differ dramatically, while China exports manufactured goods and India export services. Two are current account surplus and three are deficit countries. India's bureaucratic efficiency and China's indifference to humanitarian, environmental and regional concerns are also issues for their so apparently their joint desire to planet a flag on the global economy sufficiently overcome mutual differences. What they most need to succeed in trust. Russia and India have log historian of conflict with China, Brazil and Russia are not famous for being credit worthy.
The BRICS clearly want something tangible to demonstrate their global prominence and the power of non–western values. Yet the new BRICS bank faces two critical tensions. The first pits the desire to be free of western–imposed constraints on lending, versus the need for prudential lending. The second sets the high minded desire for equality of governance against the reality.
A) BRICS countries want to be freed of the dominance of developed economies for a developed bank.
B) Despite a various shortcomings "BRICS" bank may be a way to overcome their mutual trust deficit.
C) The BRICS bank fulfil largely till current demand.
D) The BRICS bank will take a very democratic approach to governance by giving each member equal voting rights.
E) BRICS bank money is used wisely and get repaid.

6. Which of the following statements (A), (B), (C), (D) and (E) is definitely true on the basis of the above paragraph ?
1)  Only A 2)  Only B 3)  Only D 4)  Only C 5) None of these

7. Which of the following statements (A), (B), (C), (D) and (E) is probably true on the basis of the above paragraph ?
1)  Only A 2)  Only B 3)  Only C 4)  Only E 5) None of these

8. Which of the statements are assumed in above paragraph ?
1)  Only A 2)  Only B 3)  Only C 4)  Only D 5) None of these

9. Which of the following statements (A), (B), (C), (D) and (E) is not related to the above passage ?
1)  Only E 2)  Only B 3)  Only C 4)  Only D 5) None of these

10. Which of the following are not in line with regard to the above passage ?
1)  Only C and E 2)  Only A 3)  Only D 4)  Only E 5) None of these

Answers :-

1.4; Excess notes in the market will increase the demand in the market which increase the inflation and if the notes are available with everybody it will devaluate the value of currency in the market. When the money is available with everybody people will not work reducing in the amount of the commodity in the market.

2.2; Prime lending rate is the rate of interest at which the commercial  banks  gives  loans  to  the  credit  worthy customers and the credit worthy customers are those who are already the customers of the bank thus it helps in maintain  the  old  customers  and  since  they  are  old customers the risk of giving the money is minimum.

3.2; The government was worried about the protest and reaction in the Kashmir valley because some extremist groups in the Kashmir Valley supports him and the news of  the execution  of Afzal  Guru can  hamper the  peace process in the Kashmir Valley.

4.5; The shifting of the power in Pakistan from the extremist control  towards  the  democracy  will  help  in  all  the development in all the ways. So all the conclusions will follow.

5.2; Strict laws for the sex determination and abortions should be made and anybody following this should be strictly dealt with. Female education in India will make the female more independent and will also help them in getting the employment which will automatically improve the condition of the females in India.

6.2; Only B follows, from the passage because the BRICS country open new bank which they mutually true deficit and providing loan.

7.1; Only A since the BRICS country may be dominance development in their economic through developed bank.

8.4;     9.3;        10.4


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