Spotting Errors Practice Questions for SBI PO

Mentor for Bank Exams
Spotting Errors Practice Questions for SBI PO
Directions (1 – 10): Read the sentence to find out whether there is any error in it. The error, if any, will be in one part of the sentence. The number of that part is the answer. If there is no error, the answer is (5). Ignore errors of punctuation, if any. 
1. When the government (1)/ was responsible for setting interest rates, there was (2)/ a political business cycle wherein the incumbent (3)/ government seeks to influence the economic cycle to coincide with elections.(4)/ No error (5)
2. Once the election is won, the government (1)/ can increase interest rates to reduce (2)/ inflation and if it causes a recession, there (3)/ is still time for the economy to recover for the next election.(4)/ No error (5)
3. There is the risk that President Trump or his cabinet will (1)/ interfere in the work of the Federal Reserve by arguing for (2)/ or against specific policy actions and it is easy to envision cases in which (3)/ the executive would blame the independent monetary policymakers when things go wrong.(4)/ No error (5)
4. The more aggressively the Trump Administration implement (1)/ the President-elect’s immigration and trade plans, the greater the (2)/ risk of an uptick in inflation resulting in policy rate increases and a (3)/ dispute over whether the Fed is actively thwarting the Administration’s growth and employment-oriented policies.(4)/ No error (5)
5. There are persistent proposals to restore a gold standard (1)/ but this is a very bad idea as it will not promise any macroeconomic and (2)/ financial stability. As stated by many advisors, a gold standard (3)/ would be a major source of instability and prove unsustainably.(4)/ No error (5)
6. Keeping inflation low and stable requires a credible policy commitment to the price stability (1)/ that will, from time to time, be highly unpopular; when inflation rises, the central bank must (2)/ promptly raise interest rates. And, should deflation threaten and the policy rate hit the (3)/ zero bound, the central bank must respond by using its balance sheet flexibility.(4)/ No error (5)
7. For a central bank to serve as the lender of last resort, as leading central banks did in the recent crisis,(1)/ it must have some degree of independence and in particular, they must delay disclosure about the recipients (2)/ of its funds: otherwise, banks worried about being seen as fragile will not borrow, (3)/ perpetuating the financial system’s liquidity shortfall and the panic.(4)/ No error (5)
8. Recent experience shows that all these actions can (1)/ trigger popular discontent and for legislatures, maintaining (2)/ such unpopular commitments is difficult when the benefits (3)/ only arise on a horizon longer than an electoral cycle. (4)/ No error (5)
9. Between 1997-2007, the Central Bank did a reasonable good job (1)/ in keeping inflation low, enabling a long period (2)/ of economic expansion. From 2007-2011, the Bank struggled (3)/ with the combination of credit crunch, deep recession and cost push inflation.(4)/ No error (5)
10. Before an election, the government tries to (1)/ cut interest rates and bust economic cycles (2) wherein it is better to take (3)/ monetary policy out of government’s hands.(4)/ No error (5)
1. D) The error lies in part 4 of the sentence as the verb 'seeks' is in present tense and needs to be replaced with tense in past tense as the sentence is in past tense. The verb should be 'sought' here instead of 'seek'. The sentence should read as:'..government sought to influence..'
2. D) The error lies in part 4 of the sentence as the preposition 'for' is incorrect as here it seem to convey purpose. It must be understood that an economy need to recover 'for' an election. However it can be recovered before or after the election. The correct preposition should be 'before' to signify that the recovery must be done before the election takes place. The sentence should read as:'...for the economy to recover before the next election'.
3. D) The error lies in part 4 of the sentence where the article 'the' before the word 'independent monetary policy makers' is incorrect. These policy makers are general and not anyone specific so the article' the' is incorrect here. The sentence should read as:'..blame independent monetary policymakers..'
4. A) The error lies in part 1 of the sentence where the verb 'implement' is wrong and needs to be replaced with 'implements' as the noun is singular 'Trump administration'. Thus verb in plural form is incorrect. The sentence should read as:'..Trump administration implements the President-elect's..'
5. D) The error lies in part 4 of the sentence as the adverb 'unsustainably' is incorrect and needs to be replaced with the adjective 'unsustainable' to make the subject correct. The sentence should read as:'..source of instability and prove unsustainable.'
6. A) The error lies in part 1 of the sentence as the article 'the' before the word 'price' is incorrect.Price stability is not something specific so the article is not required. The sentence should read as:'..commitment to price stability..'
7. B) The error lies in part 2 of the sentence where the pronoun 'they' is incorrect and needs to be replaced with 'it' as the subject here is 'a central bank' that is one bank and not banks. The sentence should read as:' particular, it must delay disclosure..'
8. D) The error lies in part 4 of the sentence where the preposition 'on' is wrong and needs to be replaced with 'over' to convey the correct meaning. 'Over' means 'extending directly upwards from'. The sentence should read as:'..only arise over a horizon..
9. A) The error lies in part 1 of the sentence as the adjective 'reasonable' is wrong here and needs to be replaced with the adverb 'reasonably' to make the sentence correct. It should read as:'.. did a reasonably good job in..'
10. C) Here the error lies in part 3 where an incorrect conjunction is used. The use of 'wherein' is incorrect and the correct conjunction should be used to show reason or result. Thus the correct conjunction is therefore. Thus, the correct sentence is '...cycles therefore it is better to take..'