Practice Test Discussion

Q)

Directions: Given below are six sentences (A), (B), (D), (E) and (F) which are jumbled up. Rearrange these sentences in the proper sequence to form a meaningful paragraph, then answer the given questions.

[PNB (MT), 2010]

  1. The Reserve Bank of India (RBI), which had last intervened in the foreign exchange market in June 2009, was seen buying dollars to stem the rupee's runaway appreciation.
  2. The bank had for so long resisted a rate increase, but finally toed that line of other banks as its cost of funds has gone up.
  3. The local currency recently rose to a 25-month high against the dollar on sustained capital inflows.
  4. Some interesting things have happened in the Indian financial system in the past few weeks.
  5. The RBI also announced a 12000 crore buyback of government bonds from the market to infuse money into a liquidity- starved banking system.
  6. Finally, the State Bank of India, the nation's largest lender, has raised its minimum lending rate, or base rate, by 10 basis points. (One basis point is one-hundredth of a percentage point)

 

Which of the following would be the THIRD sentence?

    • Explanation

    2. Sentence C is the next statement. it supports the opening line with example and describes about the local currency recently rose to a 25-month high against the dollar on sustained capital inflows.
    3. Sentence A will be the next statement. it describes about RBI and foreign exchange market in june 2009.
    4. Sentence E is the next statement. it describes about the RBI also announced a 12000 crore buyback of government bonds and to infuse money into liquidty.
    5. Sentence B will be the closing statement. it describes about the bank had for so long resisted a rate increase, but finally toed that line of other banks as its cost of funds has gone up.
      Hence, DCAEFB is the correct sequence.

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