English Quiz on Reading Comprehension - IBPS/BOB



Reading Comprehension 
Dear Readers,
Welcome to Mentor for Bank Exams. Here I am presenting English Quiz on Reading Comprehension for upcoming exams like BOB/IBPS. Aspirants who are preparing for these exams can make use of these!!!
Directions (1 – 10): Read the following passage carefully and answer the given question. Certain word’ phrases are given in bold in the passage to help you locate them while answering some of the questions.
Do consumers buy more when faced with fewer options: are they swayed by uninformative advertising as some studies have shown? To address such questions behavioural economists need data on consumer behaviour. It is time for the Indian middle class to come to their aid. Though few would venture to define “middle class”. It is reasonable to suppose that it refers to a segment of society actively involved in the formal economy: making banking decisions, planning for retirement and purchasing nonessential goods. There are an estimated 50-250 million middle-class Indians.
Through their everyday choices, they can help economists refine existing-models of decision-making. Perhaps one reason neoclassical economists got some things wrong is that they lacked opportunities to scientifically observe consumer behaviour. In the past markets were local informal affairs and data was hard to obtain Economists had little choice but to sit in ivory towers and write models based on what they could observe of themselves and their friends. So, economic theories of decision-making have been based on biased samples that are unrepresentative of the population at large. Hence the birth of homo economics, or the calculating self-interested agent who is meant to serve as a prototypical human but bears little resemblance to most. The behavioural economics revolution has in part been enabled by economists’ growing access to data.
Procrastination, addiction and other seemingly irrational behaviours are no longer dismissed as irrelevant or anomalous. We now have a more nuanced understanding of actual rather than idealised psychology. By analysing savings and borrowing decisions, we have learned how self-control problems manifest themselves in credit markets. Self - control is characterised by an individual’s self – imposing constraints on impulses to consume beyond his current means and the absence of which will reflect an irrational” preference to meet obligations or to consume beyond a particular threshold.
By comparing stock and bond purchases, we better understand how aversion to losses can affect risk taking. As Indians expand their engagement with the formal economy, they will inadvertently generate data that sheds further light on the intricacies of individual behaviour not just in the market but wherever there is decision-making under scarcity.
The middle class in India is under academic scrutiny. Some social scientists will no doubt continue to examine how this identity, which is essentially economic in nature, shapes political beliefs and moral convictions. For behavioural economists the task is to learn how people make choices. And when people belonging to middle class with millions of others, go with bells on to the mall, it is assured that through the choices they make, they are doing a service to social science.
1. Which of the following is/are TRUE in the context of the passage?
(A) In olden days, economists could write accurately about consumer behaviour by observing their friends’ behaviour alone.
(B) Purchasing stock and bonds can provide insight into risk taking behaviour of consumers.
(C) Few people have attempted to define ‘middle class’
a) only A and B
b) only B
c) only C
d) only B and C
e) only A
2. Which of the following is most nearly the SAME in meaning as the words ‘AVERSION’ as used in the passage?
a) suspicion
b) dislike
c) hostility
d) fear
e) doubt
3. Which of the following is NOT TRUE in the context of the passage?
a) Research suggests that people buy more if there are limited options.
b) According to research people are affected by advertisements which are not informative.
c) There are about more than 450 million middle class Indians.
d) Behavioural economists must focus on how people make choices to understand consumer behaviour better.
e) All the given statements are true
4. According to the passage, the middle class can aid in understanding decision- making process better because_______
(A) people belonging to middle class are trained in handling money matters since childhood.
(B) they take special courses to understand financial concepts better.
(c) they only buy things which are absolutely essential.
a) only A and B
b) only B
c) only A
d) only B and C
e) not mentioned in the passage
5. What is the author hinting at by the term self-control’ as used in the passage ?
(A) Spend on things which may not be essential today but may be useful at a later date.
(B) Never spend anything extra on something which is important but very expensive.
(C) Refrain from spending extra on things which are not required.
a) only C
b) only B
c) only A
d) only B and C
e) only A and B
6. What is the author hinting at by the term self-control’ as used in the passage ?
(A) Spend on things which may not be essential today but may be useful at a later date.
(B) Never spend anything extra on something which is important but very expensive.
(C) Refrain from spending extra on things which are not required.
a) only C
b) only B
c) only A
d) only B and C
e) only A and B
7. In the context of the passage, what can be said about the middle class ?
(A) It plays an influential role in helping economists understand the process of decision- making better.
(B) It is a class of people who prepare for their retirement in advance.
(C) It is more interested in purchasing shares and bonds.
a) only C
b) only B
c) only A
d) only B and C
e) only A and B
8. Which of the following can appropriately explain the phrase ‘with bells on’ as used in the passage?
a) with a lot of enthusiasm
b) full of envy
c) with lot of ange
d) in a calm state of mind
e) out of boredom
9. Which of the following is most nearly the same in meaning as the words ‘swayed’ as used in the passage?
a) waved
b) disturbed
c) influenced
d) forced
e) pressurised
10. Which of the following could be an appropriate title for the passage?
a) Looking at consumer behaviour through the eyes of a psychologist
b) The role of the ‘middle class’ in understanding consumer behaviour
c) Understand better why people buy less when they have plenty of options
d) The need to unearth the truth related to consumer psychology
e) An attempt to know the wealthier class better
Answers:
1)d   2)b   3)c   4)e   5)a   6)a   7)c   8)a   9)c   10)a