English Quiz for BOB Manipal and Dena Bank PGDBF 2017 - Set 10


Hello and welcome to exampundit. Here is a set of English Quiz for BOB Manipal and Dena Bank PGDBF 2017.

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Directions (Q. 1-10) : Read the following passage carefully and answer the questions. Certain words/phrases have been given in bold to help you locate them while answering some of the questions.

The Indian government has set an ambitious target of generating 100GW of energy from solar energy sources and 60GW from wind energy sources by 2022. As of March 31, 2016, the corresponding figures stood at 6.76GW and 26.7GW respectively. Unfortunately, renewable energy is more capital-intensive than coal, and financing this will require $160 billion of capital,$120 billion as debt, and $40 billion as equity.Currently, most renewable projects are financed by bank commercial loans at 11-12 percent interest per annum. The Indian banking sector is currently going through a balance sheet adjustment; banks are unlikely to be able to expand their balance sheets to be able to finance the additional requirements of the renewable sector. Green bonds may be able to fill this gap.A green bond is a fixed income inctrement for the purpose of raising debt capital through markets. It certifies that the proceeds will be used exclusively for specific "green" purposes. The Green Bond Principles are voluntary guidelines issued by the International Capital Market Association which states the procedure for certifying a green bond. These encompass the use of proceeds, the evaluation procedure, the management of proceeds, and financial reporting. These guidelines are lacking in specifics, leading to a lack of consensus on what classifies as a green bond. Green bonds can provide a long-term source of debt capital for renewable infrastructure projects. Since the cost of debt availed for projects is higher than the yield for investment-grade bonds, it may be possible to reduce the cost of capital for green infrastructure financed or refinanced by bonds. While green bonds can facilitate the flow of capital to low carbon infrastructure investments, the demand for such investment is driven by low-carbon policy mandates. An enabling policy context is therefore vital for the success of green bonds.

There are many ways by which the government currently provides subsidies for green projects. The first is through accelerated depreciation provisions, whereby capital expenditure is allowed to be depriciated by 80 per cent in the first year and the remaining in the following five years. Feed-in tariffs are long term contracts with discoms to purchase power from a renewable project, usually at higher rates. A viability gap funding is a capital grant from the government that bridges the gap between projects cost under the prevailing electricity rate and the price quoted by the developer. Under a generation-based incentive, the governnent provides ` 0.5/kWh ( kilo-watt hour) supplied to the grid, subject to a cumulative maximum of `10 million/MW. The incentive must be drawn over a minimum of four years and a maximum of 10 years. Under renewable purchase obligations, the National Action Plan on Climate Change (NAPCC) has set an ambitious RPO target of 15 per cent by 2020. Green bonds would enable investor diversification, mitigate risks since the repayment is tied to the issuer only, build a community of green investors and enable refinancing bank loans at a lower cost. Assets under management by signatories Responsible to the UN- supported Principles for Responsilble Investment (PRI) are around $60 trillion so far, and an increasing number of institutional investors and financial institutions globally are publicly pledging to increase their green bond holdings. Since February 2015, some banks and companies too have raised funds via green bonds. Currently, there is no pricing advantage for banks in issuing green bonds and likewise to the borrowers whose projects were invested in. Green bonds have been around for a decade but regulation and investment in them is still minuscule compared to the total market for debt mainly on account of lack of green bond standards, low credit rating of potential issuers, and higher cost of issuance. Considering that fossil fuels have enjoyed huge subsidies throughout their history (namely, subsidies diesel, kerosene and gas) and have contributed to environmental degradation and global warming, it is apt that clean energy initiatives get equitable treatment. In order to develop a green bond market, the government essentially needs to increase the funds available for investment in green projects, by providing for specific tax incentives and development of long term finance markets in general . Some of the key actionable steps would be changing Insurance Regulatory and Development Authority norms for size of investment for insurance companies, creating mandates for provident funds to invest in infrastructure and environmentally sustainable projects, increasing the priority sector lending limit for bank loans under solar energy from a meagre `15 crore, standardising the definition of green to be able to target government efforts in the direction, and mobilising retail savings by way of tax exemption on the lines of Section 80CCF. Though the market is nascent, broad guidelines are coming to the fore. As the market matures, investors will require that green bond issuers report on status of deployments and environmental outcomes of the investments. For the green bond market to have long-term credibility investors and governments would need evidence that the projects funded have in fact delivered the intended environmental benefits. The Indian government can lead the global push towards green by taking three steps to reduce our races' carbon footprint: standardise "green" bonds as a way to finance environmentally sustainable projects, provide incentives to investing in projects funded by a carbon tax on polluting sources of energy and, finally increase funds channelled towards investing in environmentally sustainable projects.  


1. Why are Green bonds important for India?
1) Green bonds are important for India for boosting Indian renewable energy capacity.
2) These are important for India to raise funds and investment.
3) These are important for India to expand the balance sheets adjustment of banks.
4) These are important for India to finance the additional requirements of the renewable sector.
5) These are important for India to fill the financial gap.


2. Which of the following statements is/are true in the context of the given passage?
(A) Green bond team sequesters expertise in the credit and capital markets area with sustainability.
(B) There is no valuation proceeds for banks in passing green bonds and likewise to the borrower whose projects were invested in Green bonds.
(C) Fixed-income securities are classified according to the length of time before minority
1) Only (A)
2) Only (B)
3) Only (C)
4) Only (B) and (C)
5) All (A), (B) and (C)


3. Which of the following can be the most appropriate meaning of the word ‘Green bond’ word given in the passage?
1) A green bond is a tax- filled income financial instrument for the purpose of raising the climate changes through market
2) A green bond is a fixed income instrument for the purpose of abridging debt capital.
3) A green bond is a rapid growth instrument in the market.
4) A green bond is a stagnant earnings instrument for the purpose of raising debt capital.
5) A green bond is a debt instrument with which an entity raises money from investors.


4. How can a Green bond market be scaled up for sustainable development?
1) A green bond market can be scaled up by increasing funds available for investment in green projects, by providing for specific tax incentives and by providing a potentially low cost and long-term source of capital.
2) By enhancing the green bond standards.
3) By accelerating the growth to keep pace with the climate challenge and investing annually for new low carbon infrastructure.
4) By low credit rating of potential issuers and higher cost of issuance.
5) By providing stable investment returns and long-term source of capital.



5. Which of the following is not true according to the passage ?
(A) The Indian government has aimed to set up a target of generating 100GW of energy from solar energy sources and 60GW from wind energy sources.
(B) An impracticability gap funding is a capital grant from the government that sit on the fence between project cost under the customary electricity rate and the price quoted by the developer.
(C) For banks, it is not possible to be able to finance the trial balance to be able to finance the additional exigency of the renewable sector.
1) Only (A)
2) Only (B)
3) Only (C)
4) Only (A) and (C)
5) All (A), (B) and (C)


Directions (Q. 6-8) : Choose the word which is MOST SIMILAR in meaning to the word/group of words printed in bold as used in the passage.


6. CONSENSUS
1) Discord 2) Variance 3) Divergence 4) Unanimity 5) Reproof


7. NASCENT
1) Ripened 2) Fledged 3) Perilious 4) Adult 5) Growing


8. DIVERSIFICATION
1) Reminiscence 2) Solidarity 3) Span 4) Concord 5) Resemblance



Directions (Q. 9-10) : Choose the word which is MOST OPPOSITE in meaning of the word printed in bold as used in the passage.
9. ENCOMPASS
1) Exclude 2) Grid 3) Exalt 4) Excavate 5) Encore



10. DEPRECIATION

1) Deflation 2) Increase 3) Reduction 4) Allowance 5) Slump


Answers:
1. 1;
2. 2;
3. 4;
4. 1;
5. 2;
6. 4;
7. 5;
8. 3;
9. 1;
10. 2;




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