Reading Comprehension

Reading Comprehension

Reading comprehension questions begin with written passages. The passages discuss topics from the social sciences, humanities, the physical or biological sciences, and such business-related fields as marketing, economics, and human resource management. The passages are accompanied by questions that will ask you to interpret the passage, apply the information you gather from the reading, and make inferences (or informed assumptions) based on the reading. The number of questions associated with each passage is 5 (it can be 4 also, depending on the question pattern). A few sample comprehensions are given below with their questions and answer for your preparation.

(*Bold option is the correct answer)

I) Read the following passage and answer the questions 1 through 5:

The fact that superior service can generate a competitive advantage for a company does not mean that every attempt at improving service will create such an advantage. Investments in service, like those in production and distribution, must be balanced against other types of investments on the basis of direct, tangible benefits such as cost reduction and increased revenues. If a company is already effectively on a par with its competitors because it provides service that avoids a damaging reputation and keeps customers from leaving at an unacceptable rate, then investment in higher service levels may be wasted, since service is a deciding factor for customers only in extreme situations.

 This truth was not apparent to managers of one regional bank, which failed to improve its competitive position despite its investment in reducing the time a customer had to wait for a teller. The bank managers did not recognize the level of customer inertia in the consumer banking industry that arises from the inconvenience of switching banks. Nor did they analyze their service improvement to determine whether it would attract new customers by producing a new standard of service that would excite customers or by proving difficult for competitors to copy. The only merit of the improvement was that it could easily be described to customers.

01. The primary purpose of the passage is to --
     A) contrast possible outcomes of a type of business investments
     B) suggest more careful evaluation of a type of business investments
     C) illustrate various ways in which type of business investment could fail to enhance revenues.
     D)trace a general type of problems to a certain type of business investment.
     E) criticize the way in which managers tend to analyze the cost and benefit of business investments.

02. According to the passage investment in service are comparable to investments in production and distribution in terms of the --
     A) tangibility of the benefits that they tend to confer
     B) increased revenues that they ultimately produced
     C) basis on which they need to be weighed
     D) insufficient analysis that managers devote to them
     E) degree of competitive advantage that they are likely to provide

03. The passage suggest which of the following about service provided?
     A) it enabled the bank to retain customers at an acceptable rate
     B) it threatened to weaken the bank's competitive position with respect to other regional banks
     C) it had already been improved after having caused damage to the bank's reputation in the past
     D) It was slightly superior to that of the bank's regional competitors.
     E) it needed to be improved to attain parity with the service provided competing banks.

04. The passage suggests that bank managers failed to consider whether or not the service improvement mentioned--
     A) was too complicated to be easily described to prospective customers.
     B) made a measurable change in the bank's office
     C) could be sustained if the number of customers increased significantly
     D) was an innovation that competing banks could have imitated
     E) was adequate to bring the bank's general level of service to a level that was comparable with that of its         competitors.

05. The author uses the word " only" in the line 27 most likely in order to --
     A) highlight the oddity of the service improvement
     B) emphasize the relatively low value of the investment in service improvement.
     C) distinguish the primary attribute of the service improvement from secondary attributes
     D) single out a certain merit of the service improvement from other merits
     E) point out the limited duration of the actual service improvement


II) Read the following passage and answer the questions 1 through 4:
In ancient times wealth was measured and exchanged in things that could be touched: food, tools, and precious metals and stones. Then the barter system was replaced by coins, which still had real value since they were pieces of rare metal. Coins were followed by fiat money, paper notes that have value only because everyone agrees to accept them. Today electronic monetary systems are gradually being introduced that will transform money into even less tangible forms, reducing it to a series of "bits and bytes", or units of computerized information, going between machines at the speed of light. Already, electronic fund transfer allows money to be instantly sent and received by different banks， companies, and countries through computers and telecommunications devices.

1. Which of the following would be the most appropriate title for the passage？
    A. International Banking Policies
    B. The History of Monetary Exchange
    C. The Development of Paper Currencies
    D. Current Problems in the Economy
    E. Electronic Money & Currency

2. coins once had real value as currency because they ______.
    A. were a great improvement over barter
    B. permitted easy transportation of wealth
    C. could become collector's items
    D. were made of precious metals
    E. were easy to handle

3. Which of the following statements about computerized monetary systems is NOT supported by the passage？
　　A. They promote international trade.
　　B. They allow very rapid money transfers.
　C. They are still limited to small transactions
　　D. They dependent on good telecommunications systems.
      E. They have made transactions easy

4. The author mentions food, tools, and precious metals and stones together because they are all:
    A. material objects
    B. useful items
    C.articles stored in museums
    D. expensive
    E. convenient

III) Read the following passage and answer the questions 1 through 5:
    One phase of the business cycle is the expansion phase. This phase is a two-fold one, including recovery and prosperity. During the recovery period there is an ever-growing expansion of existing facilities and new facilities for production are created. More businesses are created and older ones expanded. Improvements of various kinds are made. There is an ever increasing optimism about the future of economic growth. Much capital is invested in machinery or "heavy" industry. More labor is employed. More raw material are required. As one part of the economy develops, other parts are affected. For example, a great expansion in automobiles results in an expansion of the steel, glass and rubber industries. 'Roads are required; thus the cement and machinery industries are stimulated. Demand for labor and materials results in greater prosperity for workers and suppliers of raw materials, including farmers. This increases purchasing power and the volume of goods bought and sold. Thus prosperity is diffused among the various segments of the population. This prosperity period may continue to rise and rise without an apparent end. However, a time comes when this phase reaches a peak and stops spiraling upwards. This is the end of the expansion phase.

01. Prosperity in one industry :    A. Reflects itself in many other industries
    B. Will spiral upwards
    C. will affect the steel industry    D. Will end abruptly
    E. Will help all segments of the society except the farmers

02. Which of the following industries will probably be a good indicator of a period of expansion?
    A. Toys
    B. Machine tools
    C. Foodstuffs
    D. Cosmetics
    E. Farming

03. During the period of prosperity, people regard the future :

    A. Cautiously    B. In a confident manner
    C. Opportunely
    D. Indifferently
    E. Bearishly

04. It can be assumed that in the next paragraph the writer will discuss :    A. Cyclical industries
    B. Union demands     C. The status of the farmer
    D. The higher cost of living
    E. The recession period


05. The best title of the passage would be  :

    A. The Business cycle
    B. The Recovery Stage
    C. Attaining Prosperity
    D. An expanding society
    E. The Period of Good Times

IV) Read the following passage and answer the questions 1 through 4:
What is meant by the term economic resources ? In general, these are all the natural, man-made, and human resources that go into the production of goods and services . This obviously covers a lot of ground: factories and farms, tools and machines, transportation and communication facilities, all types of natural resources, and labor. Economic resources can be broken down into two general categories: property resources – land and capital – and human resources – labor and entrepreneurial skills.

What do economics mean by land ? Much more than the non-economist . land refers to all natural resources that are usable in the production process: arable land, forests, mineral and oil deposits, and so on. What about capital ? Capital goods are all the man-made aids to producing, storing, transporting, and distributing goods and services. Capital goods differ from consumer goods in that the latter satisfy wants directly, while the former do so indirectly by facilitating the production of consumer goods. It should be noted that capital as defined here does not refer to money. Money, as such, produces nothing.

The term labor refers to the physical and mental talents of humans used to produce goods or services (with the exception of a certain set of human talents, entrepreneurial skills, which will be considered separately because of their special significance). Thus the services of a factory worker or an office worker, a ballet dancer or an astronaut all fall under the general heading of labor.

01. What is the author’s main purpose in writing this passage?

    A. To explain the concept of labor                                   
    B. To criticize certain uses of capital    C. To define economic resources
    D. To define economic resources
    E. To discuss the differences of opinion of economists and non-economists.

02. The word 'arable' is closest in the meaning?
    A. Dry         B. Fertile         C. Developed         D. Open         E. Government land

03. The skills of the following could be considered examples of labor , as defined in the passage EXCEPT.

    A. artists and scientists              
    B. workers who produce services, not goods
    C. office workers                       
    D. entrepreneurs
    E. Factory workers

04. When non-economists use the term “land”, its definition
    A. Is much more general than when economists use it
    B. Is much more restrictive than when economists use it
    C. Changes from place to place
    D. Includes all types of natural resources
    E. Changes from business to business
V) Read the following passage and answer the questions 1 through 5:
Bangladeshis working overseas sent a record $938 million to their families in August 2009, confounding fears that the global crisis would trigger a flood of returning migrant workers and a plunge in crucial remittances. The month’s inflows, just before the Eid-ul-Fitre festival in the Muslim-majority country, were 30 percent up on last year and helped propel foreign exchange reserves of Bangladesh to an all- time high of $9 billion of September 1. The surge of remittances came after an estimated 6.2m overseas workers of Bangladesh sent back a record $9.7 billion during the financial year ending in June, up 22 percent from the previous financial year.

Overseas remittances are up 18 percent for the first two months of the current financial year. The rising tide of
remittances, which accounted for 10 percent of the country’s gross domestic product last year, follows the exodus of a record 875,000 Bangladeshis to jobs overseas in 2008, up form about 832,000 the year before. Bangladeshi migrants work mainly in the Middle Eastern countries including Saudi Arabia and the United Arab Emirates. Their earnings are a lifeline for millions. In spite of the record remittances, the president of the Bangladesh Association of International Recruiting Agencies said that many Bangladeshis were feeling a pinch of the crisis even though the feared wave of returnees had not been materialized. The average income of the average migrant workers reduced tremendously, he said, ‘they had less overtime and in some cases did not have sufficient work.’

The rising remittance inflows also reflect the significant improvement in the banking system of Bangladesh and an
increased willingness of the overseas workers to entrust their cash to it. BAIRA President warned that the recruitment of new workers from Bangladesh for overseas jobs had fallen about 50 percent this year.

01. What appears to be the major challenge for Bangladesh in 2009 regarding foreign remittances?

A. A large number of returning migrant workers from overseas
B. Bangladeshi overseas workers having less overtime work now than before
C. Migrant workers form Bangladesh not having sufficient work
D. The prevailing global crisis in countries where Bangladeshi migrant workers mainly work

02. Which of the following statements concerning financial year 2008-09 is not correct ?

A. 10% of the GDP of Bangladesh came from remittances from overseas by our migrant workers.
B. The foreign exchange reserve of Bangladesh rose to an all time high.
C. About 6,200,000 workers worked in different foreign countries in the year in question.
D. The highest number of Bangladeshis got jobs in foreign countries in the year in question.

03. What is the meaning of the word EXODUS in the second paragraph of the above passage?

A. recruitment
B. Entry
C. Exit
D. Remittance
E. Increase

04. What should be the most appropriate title of the above passage?

A. Bangladeshis Send Home Record $938m in August, 2009.
B. Recruitment of New Workers from Bangladesh Falls in 2009.
C. Bangladeshi Migrants Work Mainly in Middle Eastern Countries.
D. Earnings of Bangladeshi Migrant Workers are a lifeline for millions.
E. Average Income of the Bangladeshi Migrant Workers Reduces Tremendously in 2009.

05. Based on the data given in the passage, what was the estimated amount of remittances made by the overseas
workers form Bangladesh in the financial year ending June 30, 2007?

A. $6.30bln
B. $9.70bln
C. $11.83bln
D. $7.57bln
E. $7.95bln

VI) Read the following passage and answer the questions 1 through 5:
Bangladesh is set to be one of the few countries in the Asia-Pacific region which suffer less than others from the global economic slowdown that has come in the aftermath of the financial crisis. Bangladesh achieved robust growth of 6.2 percent in 2008, down only slightly from 6.4 percent in 2007 despite back-to-back floods and a devastating cyclone. With the global economic crisis deepening, growth of Bangladesh’s economy is expected to further ease to 5.5 percent in 2009, according to the Economic and Social Survey of Asia and the Pacific-2008. This year’s issue of the flagship publication of ESCAP is titled “Addressing Triple Threats to Development”. It analyses the three global crises which have converged to threaten development in the Asia-Pacific region : the financial crisis, fuel and food prices, and climate change.

The survey provides a regional perspective as well country-specific analyses, outlining ways in which economies in the region can move forward in unison towards a more inclusive and sustainable development path. Inflation has been driven up in all the countries of South Asia, partly by unrelenting pressures from higher international commodity prices, particularly the prices of oil, basic metals and selected food items. Inflation in Bangladesh in 2008 rose to around 10 percent, up from 7.2 percent in 2007. With the fall in oil and other commodity prices in international markets, inflation is expected to come down in 2009.

In Bangladesh, the fiscal deficit as a percentage of gross domestic products increased from 3.7 percent in 2007 to 4.8 percent in 2008, despite healthy growth in government revenue. The pressure on the fiscal balance increased due to large increase in spending on flood and cyclone relief work and an expansion of subsidies following the rise in fuel, fertilizer and grain prices in international markets. Fiscal policy is expected to remain expansionary to promote growth and employment, while subsidies on food and fertilizer are expected to remain in place to contain inflation and boost the production of agricultural crops.

The surge in prices of fuel oil, food and other commodities created severe problems for the external balances of most countries in South Asia. However, in Bangladesh, despite an increasing trade deficit propelled by higher imports, the current account balance showed a surplus resulting from robust growth in export earnings and workers’ remittances. The inflow of workers’ remittances increased by one-third, reaching nearly $8 billion in the fiscal year of 2008. If the global economic crisis persists for a longer period, workers’ remittances my fall in coming years, causing difficulties for balance of payments.

Among long-term challenges, poverty remains a major problem for most countries in South Asia. Also, economic and social inequalities remain widespread. Therefore, towards improving growth rate and overcoming inequalities in these countries, the pro-poor growth sectors like agriculture, construction and small and medium enterprises which generate employment should be supported.

1. Which of the following statements is not true in the context of economic performance of Bangladesh during 2008?

a. Government revenue increased during the year.
b. Balance of Trade decreased during the year.
c. Balance of Payment increased during the year.
d. Rate of inflation increased during the year.
e. Balance of Trade increased during the year.

2. Which of the following, you think, should be most appropriate as the title of the passage?

a. Fallouts from Global Recession to be less severe for Bangladesh.
b. Global Financial Crisis and its Impact on Bangladesh.
c. Pro-poor Growth Sectors should be Supported in Bangladesh.
d. Trade Deficits go on Increasing in Bangladesh.
e. Government subsidies may contain inflation and boost production in Bangladesh.

3. Which of the following does not emerge as a logical forecast about the condition of Bangladesh economy in 2009?

a. Bangladesh economy may grow at 5.5% in 2009.
b. The rate of inflation may come down in 2009, compared to that of the previous year.
c. Workers’ remittances may fall in 2009 to less than $8 billion.
d. The balance of payment position of Bangladesh may be more unfavorable in 2009.
e. The rate of inflation may increase in 2009 as compared to that in 2008.

4. How did the economic growth rate change in 2008, compared to that of 2007?

a. It increased by 6.2%
b. It decreased by 6.4%
c. It decreased by 5.5%
d. It decreased by 0.2%
e. It decreased by 3.3%

5. According to the ESCAP Publication which of the following was not identified as a major threat to development in Asia-Pacific region, including Bangladesh?a. Increased fuel prices
b. Devastating floods and cyclones
c. Global financial crisis
d. Changes in climatic conditions
e. Increased food prices