Reading Comprehension Questions for Banking Exams | Set-4

Reading Comprehension Questions for Bank Exams

In Bank exams IBPS PO, SBI PO/Clerk, Reading Comprehension Questions (RCQs) help the aspirants to score more marks in English language section. Reading comprehension questions test a candidate’s ability to understand, analyze, and interpret written passages. Solving RCQs effectively requires a combination of reading skills, strategic thinking, and practice.

 In this article, we will provide Reading Comprehension Questions with Solutions. English Comprehension Questions often carry a significant weightage in the reasoning section. Scoring well in these questions can significantly boost your overall score. You can attempt these questions & boost your preparation for your examination.

Reading Comprehension Questions | Set-4

Practicing Reading Comprehension Questions (RCQs) enhances your vocabulary, grammar, and comprehension skills, which are essential for effective communication in the workplace. In exams like IBPS/SBI PO and IBPS Clerk, they can account for 10-15 questions, making them a decisive factor in your overall score.

Direction: Read the passage carefully and answer the questions given below it. Certain words/phrases have been given in bold to help you locate them while answering some of the questions.

After the recent Assembly elections, the new governments in Rajasthan, Madhya Pradesh and Chhattisgarh announced farm loan waivers, a key promise. Last year, Uttar Pradesh, Maharashtra, Karnataka and Tamil Nadu announced waivers as farmers were in distress. Andhra Pradesh, Odisha and Haryana are likely to announce sops ahead of elections. According to SBI Research, around ₹70,000 crore will be spent on farm debt waivers till May 2019. The demand for farm loan waivers has been growing, but this “’populist” measure alone cannot be a permanent solution to mounting agrarian distress, according to experts. Since the post-reforms policy regime in 1991, agriculture has been facing multiple crises. The rising pressure of population on land and agriculture, besides sluggishness in the shifting of workforce away from agriculture, has adversely affected small and marginal farmers, say agriculture experts and economists.

Rising costs, drop in income and increasing incidence of indebtedness among small and marginal farmers manifested in a spate of suicides over the years. Experts believe it is the responsibility of the Union government to waive farm loans, but insist that it is only a “stop-gap” arrangement. They argue that until policies are not modified in favour of farmers to address their risks related to production, weather-disaster, price, credit and market, the loan waiver will become a periodical instrument for temporary relief. A large number of small and marginal farmers are distressed as the current system of market institution doubly squeezes them, in input as well as output.

In the backdrop of the ongoing debate on farm loan waivers, the NITI Ayog, the government’s policy think tank, recently pointed out that waiving loans is not a lasting answer to the problem of agrarian distress as this step only helps a small number of farmers. According to agriculture policy expert and NITI Aayog member Ramesh Chand, the number of farmers, especially the small and marginal who avail themselves of institutional loans, are very few and this is the reason that even after spending huge sums of money on loan waivers not even half the farmers are benefiting. In some of the States, not even 25% of farmers get loans from institutional sources. A NITI Aayog study had also highlighted the fact that in some States, about three-fourths of the farm loans were being used for consumption instead of meeting agricultural needs, Professor Chand says. The Reserve Bank of India’s study, ‘State Finances: A Study of Budgets,’ released earlier this year, analysed the previous experiences with loan-waiver schemes in various States and concluded that “debt relief helps in reducing household debt but there appears to be no evidence of increase in investment and productivity of beneficiary households.”

As a short-term measure, farmers need to be freed of the tyranny of the middlemen by reforming the rent-seeking, anti-farmer commission agent (arthiya) system. The inter-locking of the credit and the output markets is a major factor for the crises of indebtedness. The system of making payments through the commission agent needs to be dismantled to break the credit-crop nexus. Lakhwinder Singh, an agriculture expert and a professor of economics at Punjabi University, Patiala, says that for a permanent solution to agrarian distress, the government should give agro-processing industry a policy push to pull rural people out of agriculture. In the long run, there’s an urgent need for integration of agriculture with industry, and that too with the involvement of the local workforce in such a manner that surpluses should be invested locally. “The subsidies and tax concessions which have been offered or given to the corporate sector should be given to rural entrepreneurs who are willing to start manufacturing firms that will process local raw materials and employ rural labour. The transformation is possible if primary producers are integrated with both manufacturing and marketing activities for reaping surpluses generated by them,” he says.

1. What has been the solution suggested by Lakhwinder Singh to overcome the agrarian distress?

2. What have been the reasons cited by Ramesh Chand for the non-achievement of desired results by the loan waiver schemes?
(i) lack of infrastructure for the upgradation of agricultural work
(ii) small and marginal farmers opting for institutional loans are negligible
(iii) a significant share of agricultural loans was diverted for personal use

3. What have been the various forms of crises faced by agriculture post 1991 policy reforms?

4. What have been the short-term measures suggested by the writer for addressing the agricultural issues?
(i) emancipating the farmers from the brutality of middlemen
(ii) land should not only be a productive asset but also a source of security and status
(iii) developing a pro-farmer rental system

A. Only (iii)
B. Only (ii)
C. Only (i)
D. both (i) and (iii)
E. all (i), (ii), (iii)

5. Why do experts believe that farm loan waivers are “stop-gap” measures?

English Topic-Wise Questions Sets 2025

At Let’s Study Together (LST) we understand our students’ requirements and keeping it in mind, The LST Team created a Very special “Banking English Topic-wise Booster Tests 2025” to crack upcoming Banking and Insurance Exams. These tests are available on our Exam Preparation Mobile App/Web named “Ixammr”. These questions are made by our experts after carefully examining previous years’ question papers. If you prepare this thoroughly, you can very easily crack the Banking Exams.

6. Choose the word which is MOST SIMILAR in meaning to the word printed in bold as used in the passage.

DEMAND

7. Choose the word which is MOST SIMILAR in meaning to the word printed in bold as used in the passage.

MODIFIED

8. Choose the word which is MOST SIMILAR in meaning to the word printed in bold as used in the passage.

DISTRESS

9. Choose the word which is MOST SIMILAR in the meaning of the word printed in bold as used in the passage.

ANALYSED

10. Choose the word which is MOST OPPOSITE in meaning of the word printed in bold as used in the passage.

PERMANENT

What Are Reading Comprehension Questions in Bank Exams?

Reading Comprehension Questions are designed to evaluate a candidate’s ability to read and understand a given passage. These questions typically follow a paragraph or a set of paragraphs, and candidates are required to answer questions based on the information provided in the text. In banking and insurance exams, RCQs often include:

1. Fact-based questions: These require you to identify specific details or information directly stated in the passage.
2. Inference-based questions: These demand logical deductions or conclusions based on the passage.
3. Vocabulary-based questions: These test your understanding of word meanings, synonyms, antonyms, or contextual usage.
4. Theme-based questions: These focus on the main idea, tone, or purpose of the passage.
5. Application-based questions: These require you to apply the information from the passage to real-life scenarios or hypothetical situations.

In today banking and insurance exams,  Reading Comprehension Questions are blend of logic, patience, and strategy. Regular practice of these questions, coupled with smart techniques, can transform this challenging topic into a scoring forte. Candidates must focus on accuracy first, and then speed, and soon this section will become your ally in cracking banking and insurance exams!