English Reading Comprehension Questions for Banking Exams
English Reading Comprehension Questions for Banking Exams

Reading Comprehension Questions for Bank Exams

In Bank exams IBPS PO, SBI PO/Clerk, English Reading Comprehension Questions (RCQs) help the aspirants to score more marks in English language section. English 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-13

Practicing English 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.

Directions:(1-10) Read the following passage carefully and answer the questions.

Over the last three centuries the world economy has evolved from a predominantly agriculture-based system to a digital economic system. The earlier economies were mainly agrarian. In this era, capital did play a role as did technological innovations such as the plough, the steamboat or the train. But land and labour were more critical.
With the service economy, the wealth create by services exceeded the wealth created through manufacturing. Here the ability of the service provider to establish a sound business gave him access to additional capital. This evolved into a global economy where goods and services were traded across international borders with little restriction. In this period, capital started flowing across borders on a large scale for the first time.
The last five years have seen the advent of the digital economy where technology is becoming the driving force. With information being the driver of value and wealth creation, information technology is becoming the key to success in a growing number of industries. In the digital economy, the power of innovation and ideas have gained the upper hand over direct access to capital.
The Indian economy is in a unique position in terms of its economic evolution. While manufacturing and service industries in India cannot freely access capital, the new breed of IT based industries have access to venture capital and private equity. The country’s potential in this emerging sector has opened the doors to capital inflows that are still not available to traditional industries.
There are two key trends which will boost the democratization of capital, either directly as funding sources or indirectly.
More effective capital market routes especially for information based and software companies.
This is already happening rapidly. A market that was supposed to bestagnating with no public offering from the manufacturing sector in the first quarter of the fiscal year, may see as many as 20-25 new software issues this year. Numerous Internet and e-commerce companies are tapping funds through the capital market. For the financial intermediaries as well as for the investing public, dot com or ‘info’ initial public offerings are fast becoming attractive investment alternatives to traditional manufacturing or financial sector offers.
With more effective capital markets, for high potential IT stocks, ‘critical mass’, which in the industrial economy was primary in ensuring as company’s ability to raise capital, will cease to matter. This underlines the manner in which a burgeoning digital economy has led to a redeployment of capital from a concentrated segment to the smaller knowledge entrepreneur.
A greater number of venture capitalists are actively seeking to fund budding knowledge entrepreneurs. Along with the rise in Net entrepreneurs one has seen the emergence of a new breed of venture capitalists who recognize the potential that resides in these ideas. The emergence and strengthening of the virtual economy necessitates sources of funds at the ‘ideation’ stage where business plans may still be at the infancy stage and potential not clearly identified.
This need is being fulfilled by the incubator funds or the angel investors who hand-hold Internet start-ups and other Info Tech ventures till the stage at which they can attract bigger investors. Instead of looking at high risk but big ventures, this genre of venture capitalists are looking at investments in companies which have the potential of excellent valuations in the future on the strength of their ideas.

1. Which of the following has been rated as most crucial in agro based economy? 
(i) Land
(ii) Labour
(iii) Capital

A. Only (i) and (ii)
B. Only (iii) )
C. Only (ii))
D. Only (i)
E. None of these

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Correct Answer – A. Only (i) and (ii)

Refer to the  first paragraph.

2. How did service economy evolve into a global economy? 

A. The wealth gained through service exceeded the gain through manufacture.
B. The services started flowing across borders.
C. The labour started producing goods for mass market.
D. The trade for services and goods crossed the international borders.
E. None of these

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Correct Answer – A. The wealth gained through service exceeded the gain through manufacture.

Explanation: Refer to the second paragraph.

3. Which of the following best describes the phrase “critical mass” as used in the passage? 

A. The sum total capital of industrial economy
B. The ability of an organization to raise funds
C. The net worth of a small knowledge entrepreneur
D. Paradigm shift from fund base to knowledge base
E. None of these

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Correct Answer – B. The ability of an organization to raise funds 

Explanation: Refer to the eventh paragraph.

4. The public offer of which type of companies are preferred by the investors at present?

A. Companies dealing with financial sector
B. Information based companies
C. Agro based companies
D. Service sector companies
E. None of these

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Correct Answer – B. Information based companies 

Explanation: Refer to the sixth paragraph.

5. What impact on economy has been envisaged owing to rise in net enterprise? 

A. Virtual economy has necessitated the source of funds from abroad.
B. The funding of unplanned projects have increased.
C. The economic planning will no more be realistic now.
D. The venture capitalists have started financing the projects even at the planning stage.
E. None of these

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Correct Answer – D. The venture capitalists have started financing the projects even at the planning stage.

Explanation: The statement, ‘….The emergence and strengthening of the virtual economy necessitates sources of funds at the ‘ideation’ stage where business plans may still be at the infancy….. ’ suggests that (D) is the correct option.

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.

Banking English Topic-Wise Questions Sets 2025

6. Which trend can boost capital growth in the modern era? 

A. Promoting information based and software companies
B. Generating resources through international trade
C. Converting manufacturing industries into service sector
D. Conversion of land and labour to private equity
E. None of these

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Correct Answer – A. Promoting information based and software companies 

Explanation: It is clearly given in the passage that, ‘……… two key trends which will boost the democratization of capital, either directly as funding sources or indirectly……….. More effective capital market routes especially for information based and software companies.

7. Choose the word which is most nearly the SAME in meaning to the word printed in colored used in the passage. Advent 

A. arrival
B. force
C. power
D. departure
E. None of the above

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Correct Answer – A. arrival

Explanation: Advent means the arrival of a notable person or thing. So, arrival is the word which is similar in meaning to it.

8. Choose the word which is most nearly the SAME in meaning to the word printed in colored used in the passage. Traditional 

A. excessive
B. customary
C. old
D. religious
E. None of the above.

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Correct Answer – B. customary

Explanation: Traditional means existing in or as part of a tradition. So, customary is the word which is similar in meaning to it.

9. Choose the word which is most nearly the OPPOSITE in meaning to the word printed in colored used in the passage. Burgeoning 

A. common
B. unique
C. dipping
D. retarding
E. growing

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Correct Answer – D. retarding

Explanation: Burgeoning means begin to grow or increase rapidly; flourish. So, retarding is the word which is opposite in meaning to it.

10. Choose the word which is most nearly the OPPOSITE in meaning to the word printed in colored used in the passage. Stagnating 

A. stationary
B. overworking
C. developing
D. fixed
E. Pretentious

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Correct Answer  – C. developing 

Stagnating means cease developing; become inactive or dull. So, developing is the word which is opposite in meaning to it.

What Are English Reading Comprehension Questions in Bank Exams?

English 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,  English 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!