Test Preparation on CAT Verbal Logic

1.

A Two-way communication channels need to be consciously develop>ed and maintained. B. Performing employees at the operational level must not only be rewarded and shown a visible career path, but must be consciously developed to exercise higher responsibility. C. These people often perform better than MBA inductees, the promising among them are able to apply conceptual inputs through the lens of experiential reality. D. One progressive Indian retailer has actually run a two-week external course on retail marketing for promising supervisory personnel, and people who have responded positively have been quickly promoted to higher positions. E. Open houses, get-togethers outside the workplace (team picnics and so on), employee suggestion boards all play a role in this regard.

2.

A. The general impression that skilled negotiators .seem to convey is they are people who keep their cards close to their chests and do not reveal their feelings. Hence, they used a surrogate method ? they counted the number of / times that the negotiators talked about their feelings or motives. C. This contrasts sharply with the amount of information given about external events such as facts, clarifications, and general expression of opinion. -- p. The results showed that contrary to the general impression, skilled negotiators are more likely to give information about internal events than are average negotiators. E. Feelings are in themselves not observable and Huthwaite's researchers could not measure them directly.

3.

A. A feature of the boom in the 198()s was the sensitivity of the slock markets to government policies. B. Companies, especially in the IT sector, are often more dependent on foreign markets than on what happens at home. C. These changes have made Indian stock markets less sensitive to government policy. D. Since then the economy has been substantially liberalised. E And the attitude of the foreign institutional investors is quite heavily influenced by trends in global stock markets.

4.

Al They argue that it is this, which has led to the bankruptcy in many states. B. Here was a commission whose members worked very hard, did exemplary research and homework, before coming up with a list of reconunendations that balanced economic efficiency with safety nets for disadvantaged labour. C. It reminds us of the political shenanigans during the implementation of the Fifth Pay Commission. D. How many times have you heard experts, politicians and the finance ministers refer to the implementation of the pay hikes following the commission's report as the singular cause for the increase in government expenditure? E. Barring P. Chidambram. who was then the finance minister, every single political party and politician opposed the implementation of the recommendations and are directly responsible for the current fiscal crises in the Centre and the states.

5.

A. In the earlier era companies could convert a local reputation into a small initial public offering that catered primarily to small investors. B. As long as the capital base was kept small, even a modest initial profit was enough to push up the share prices. C. The exit of small investors has an immediate impact on the fortunes of small companies that hope to make it big through the capital market. D. And if prices were kept high, the companies could follow the Infosys path to global recognition. E. But without the small investor base companies have to have national recognition before they can tap the capital market.

6.

A. The problem lies in their ostentatious spending habits, even more condemnable when this vulgar display of wealth coexists amidst such poverty and deprivation. B. Consumerism is the new Bruhttmn. C. Tliere is nothing wrong with the New Rich; they are a dynamic layer of an emerging economy. D. 'Keeping up with the Joneses' is the magic mantra of upward mobility. E. Functions are becoming more ostentatious by the day, with nouveau rich ingenuity focused on novel ways to upstage rivals.

7.

A. Let us take a look at the manner in which the traditional bank adds value to the customer. B. The ability to retain deposits, in itself, is not enough to ensure longterm survival and growth. ' C. The ability to deploy invested funds into productive economic activity at a higher rate of return, hence contributing to the prosperity of both the economy and the institution, is the other loop in the banking cycle. D. Further, as only a small portion of the actual deposit base is retained with the bank in a liquid form, the very survival of the bank lies in building enough trust with its clientele so as to prevent the occurrence of a sizeable chunk of simultaneous customer withdrawal (a run on the bank). E. The bank's basic job is risk absorption ? it takes money, which has a lot of attached risk, and provides the customer an assured rate of return.

8.

A South Korea's leaders had tried to buck the system ? to get half pregnant, as several observers put it. B. They had diversified into far too many unrelated activities ? what exactly is the connection between building offices and making underwear, for example? And their enthusiasm for endless cross subsidiaries meant that even the healthiest companies could be dragged down by their sick subsidiaries. C. The country had opened up its markets to foreign capital yet refused to regulate them according to foreign standards or let foreign banks take over domestic ones. D. The chaebol had used their political connections to bully banks into lending them far too much cheap money. E. In 1996 South Korean banks showed bad-loan ratios accounting for just one per cent of the country's lending, forcing outsiders to guess how much higher the true figure was.

9.

A The markets are not Just wiring economies together and altering the structures of companies but changing entire political systems. B. But, as the experience of South Korea shows, figures probably underestimate the impact of the capital markets on the world. C. The speed of movement is faster, the ratio of capital to traded goods bigger and the consequences of a mistake more devastating. D. Everything about global capital markets seems to be breaking records these days. E. The amount of capital in circulation is greater than ever before,

10.

A. Over the years, I have had the opportunity to observe and understand the thought processes behind the ads that have been flooding both the print and the TV media. B. Although there is a huge shift in the quality of ads that we come across on a daily basis ? thanks essentially to improvements in technology ? I somehow can't help but feel that the quality of communication of the message has become diluted. C. Proportionally, the number of ads that lack in quality, have gone up exponentially as well! D. There is an increasing attempt by most companies to be seen as cool and funky. E. Another reason could be the burgeoning number of companies, which means an exponential increase in the number of ads that are being made.

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