Based on your understanding of the passages given below, answer the questions that follow.

Reading Comprehension:

Despite the economic crunch worldwide that saw pulverisation of some of the largest banking and finance giants, Indian banking houses have managed to show positive growth this quarter. Some of India’s leading national banks have posted a net profit rise of more than 40% over the last quarter amid global turmoil. This would come as a big shot in the arm for the investors and consumers of these banks even though apprehension is mounting on other banking and broking firms worldwide. One of the main reasons behind the success of these banks this quarter, would be their direct backing by the government of India. People take solace in their investments in public sector watching the bailout package is being cashed out by governments all over the world to save big business houses.

Other private banks in India have also reported a substantial net profit over the last quarter. Given the international and domestic scenario one cannot put this down as a mundane achievement. While others are on a cost-cutting spree and firing employees, Indian companies are actually working on boosting staffing in banking and broking sectors. This can be seen as a big boon in the days to come when the current recession eases and the economy gradually comes back onto the fast track. The finance minister has assured Indian public about the sound health of all Indian banks. This could also be evident from the fact that there have been no mergers and takeovers in Indian banking sector in contrast to world scenario where finance houses are looking for mergers to cut costs on operations. We definitely are not looking to thrive; rather we are looking for growth. It is just that the pace of growth is a little slow now as compared to a year or two before. These are hard times to test the hard. The weak in business and Career will be weeded out and it is sometimes very beneficial for business in the long run.

1. What according to the author is the reason for the success of Indian national banks in this quarter? Medium
A. Indian national banks do not have any commitments in troubled foreign markets
B. These banks can never face financial crisis because of their sheer size
C. These banks are ready to give loans at a very low rate of interest
D. The public is ready to invest in these banks because of the knowledge that these banks get strong support from the government

View Answer

Answer: Option D

Explanation:

Refer to: “One of the main reasons behind the success of these banks this quarter, would be their direct backing by the government of India.”
2. What according to the author will be a big boon in the days to come? Medium
A. The economy coming back on the fast track
B. The slowing down of the economy.
C. Increased hiring in Indian financial sector in times of economic slowdown
D. The cost cutting carried out by all the companies

View Answer

Answer: Option C

Explanation:

Refer to: “While others are on a cost-cutting spree and firing employees, Indian companies are actually working on boosting staffing in banking and broking sectors. This can be seen as a big boon in the days to come when the current recession eases and the economy gradually comes back onto the fast track.”