English Questions – Cloze Test Set(New Pattern) 269

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Directions (1-10): The following question consists of a passage in which certain phrase/Words are printed in bold. Find out if there is an error in any of the bold word, find the correct alternatives to replace those words from the options given below each question to make the sentence grammatically correct. If the given word is grammatically correct or does not require any correction, choose (e), i.e., “No correction required” as your answer.

This is not a normal business cycle; monetary policy will be a lot less effective in the future; investment returns will be very low. These have come to be widely held views, but there is little understanding as to why they are true. I have a simple (1)_______ template for looking at how the economic machine works that helps shine some light. It has three parts.
First, there are three main forces that drive all economies: 1) productivity; 2) the short-term debt cycle, or business cycle, running every five to ten years; and 3) the long-term debt cycle, over 50 to 75 years. Most people don’t (2)_______ exactitude understand the long-term debt cycle because it comes along so infrequently. But this is the most important force behind what is happening now.
Second, there are three (3)_______ asymmetry that markets (4)_______gravitate towards: 1) debt growth has to be in line with the income growth that services those debts; 2) economic operating rates and inflation rates can’t be too high or too low for long; and 3) the projected returns of (5)_______ impecunious have to be above those of bonds, which in turn have to be above those of cash by appropriate risk (6)_______ tangibility. Without such risk premiums the transmission mechanisms of capital won’t work and the economy will grind to a halt. In the years ahead, the capital markets’ (7)_______ acquition mechanism will work more poorly than in the past, as interest rates can’t be lowered and risk premiums of other investments are low. Most people have never experienced this before and don’t understand how this will cause low returns, more debt monetisation and a “pushing on a string” situation for monetary policy.
Third, there are two levers that policy-makers can use to bring about these equilibriums: 1) monetary policy, and 2) fiscal policy. With monetary policy becoming relatively (8)_______productive, it’s important for these two to be co-ordinated. Yet the current state of political (9)_______fragmentation around the world makes effective co-(10)_______ compass hard to imagine.

  1. 1) cognizability
    2) limpidity
    3) limpidness
    4) explicability
    5) No correction required.
    Answer & Explanation
    Answer : 5)
    Explanation: No correction required
  2. 1) distinctness,
    2) decipherability
    3) adequately
    4) lucidity
    5) No correction required.
    Answer & Explanation
    Answer : 3)
    Explanation: adequately – satisfactory or acceptable in quality or quantity.
  3. 1) equilibriums
    2) lopsidedness
    3) shortcoming
    4) disproportion
    5) No correction required.
    Answer & Explanation
    Answer : 1)
    Explanation: equilibriums – a state in which opposing forces or influences are balanced.
  4. 1) underneath
    2) loamy
    3) hebetic
    4) gravid
    5) No correction required.
    Answer & Explanation
    Answer : 5)
    Explanation: No correction required.
  5. 1) subjacent
    2) fecund
    3) equities
    4) procreant
    5) No correction required.
    Answer & Explanation
    Answer : 3)
    Explanation: equities – the value of the shares issued by a company.
  6. 1) subsidiary
    2) ferocious
    3) abundant
    4) premiums
    5) No correction required.
    Answer & Explanation
    Answer : 4)
    Explanation: premiums – an amount to be paid for a contract of insurance.
  7. 1) arable
    2) transmission
    3) obtain
    4) actuation
    5) No correction required.
    Answer & Explanation
    Answer : 2)
    Explanation: transmission – the action or process of transmitting something or the state of being transmitted.
  8. 1) corner
    2) procure
    3) latch on to
    4) impotent
    5) No correction required.
    Answer & Explanation
    Answer : 4)
    Explanation: impotent – unable to take effective action; helpless or powerless.
  9. 1) predicament
    2) induction
    3) retain
    4) acquire
    5) No correction required.
    Answer & Explanation
    Answer : 5)
    Explanation: No correction required.
  10. 1) detriment
    2) possess
    3) annex
    4) ordination
    5) No correction required.
    Answer & Explanation
    Answer : 4)
    Explanation: ordination – the action of ordaining someone in holy orders.
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