Cloze Test

English Cloze Test Practice Set 64

Directions—(Q1 – 10 ) In the following passage there are blanks each of which has been numbered. These numbers are printed below the passage and against each five words are suggested one of which fits the blank appropriately. Find out the appropriate word in each case.

The framework released by the RBI for entry and expansion of foreign banks in India makes sense. If foreign banks do enter India, it would drive local banks to become (1) efficient and encourage mergers and acquisitions. These banks will also bring (2) technology and expertise to foster financial inclusion. The RBI’s final rules provide a foreign banks nearly the (3) freedom as a private sector bank in opening branches if it takes the form of a local subsidiary. New or existing (4) will have to set up wholly-owned arms if they are systemically important foreign banks, or banks that have a complex (5) or those that do not have adequate disclosure requirement in their home jurisdictions or offer home residents preferential protection in case of a problem. However, those present in India before August 2010 Citi, HSBC and Standard Chartered have the (6) to continue as branches. Rightly, the regulator must encourage their conversion into local subsidiaries, following Indian laws. It will ring-fence the capital and assets of the bank within India and (7) effective risk control. Incentives by way of operational freedom could persuade some banks to (8) into wholly-owned subsidiaries. India is a growing market and more branches would do no harm. However, technology has made physical branch networks much less (9) today. An example is the credit card (10) of foreign banks that has far surpassed their branch-network size.