General English Section

 

For the following questions in this section, correct answers carry 1 mark each.

 

Directions for Question No. 132-134: Read the passage carefully and answer within the context.

 

Number of words in this passage : 222

 

In September of 1929, traders experienced a lack of confidence in the stock market’s ability to continue its phenomenal rise. Prices fell. For many inexperienced investors, the drop produced a panic. They had all their money tied up in the market, and they were pressed to sell before the prices fell even lower. Sell orders were coming in so fast that the ticker tape at the New York Stock Exchange could not accommodate all the transactions.

 

To try to reestablish confidence in the market, a powerful group of New York bankers agreed to pool their fund and purchase stock above current market values. Although the buy orders were minimal, they were counting on their reputations to restore confidence on the part of the smaller investors, thereby affecting the number of sell orders. On Thursday, October 24th, Richard Whitney, the Vice President of the New York Stock Exchange and a broker for the J.P. Morgan Company, made the effort on their behalf. Initially it appeared to have been successful, then on the following Tuesday, the crash began again and accelerated. By 1932, stocks were worth only twenty percent of their value at the 1929 high. The results of the crash had extended into every aspect of the economy, causing a long and painful depression, referred to in American history as the Great Depression.

 

132. The New York bankers counted on –

       (a)  Current market values.    (b)  The number of sell orders.       (c)  Confidence.                (d)  Their reputation.

 

       Explanatory Note:

Refer to para 2, lines 3. ‘….. counting on their reputations ……..’.                                                                     Choice (d)

 

133. The cause of downfall of share market was –

       (a)  Inexperienced investors.                                                   (b)  Phenomenal decrease.

       (c)  Lack of confidence in stock market’s ability.                       (d)  Panic amongst investors.

 

       Explanatory Note:

Though both c and d are mentioned in the passage, d is the reason for the crash. It is the panic among people which produced the crash. If this had not happened (even after c happened) there would have been no crash.                             Choice (d)

 

134. Choose the word in the passage that is an antonym of “minimal”.

       (a)  negligible                       (b)  minimum                               (c)  maximal                     (d)  significant

 

       Explanatory Note:

Para 2, line 2 has the word ‘minimal’. It cannot be replaced with ‘maximal’ – only ‘significant’ works. (Note: the direction says, ‘Choose the word in the passage ……’, but none of the words given appear in the passage. This is, therefore, taken to mean ‘Choose the word that is an antonym of ‘minimal’ as used in the passage’).                                                          Choice (d)