GRE Questions

Q:

A passage with three blanks, followed by five options, each containing one word, is given. Choose the word that can fill all the three blanks.
In finance, a __________ is an instrument of indebtedness of the issuer to the holders. The ___________ is a debt security, under which the issuer owes the holders a debt and is obliged to pay them interest (the coupon) or to repay the principal at a later date, termed the maturity date. Interest is usually payable at fixed intervals (semi- annual, annual, sometimes monthly). Very often it is negotiable, that is, the ownership of the instrument can be transferred in the secondary market. This means that once the transfer agents at the bank medallion stamp the same, it is highly liquid on the secondary market. Thus, a __________ is a form of loan or IOU.

A) Brand B) Stock
C) Bond D) Barter
 
Answer & Explanation Answer: C) Bond

Explanation:

‘Brand’ refers to a particular identity or image regarded as an asset. ‘Stock’ refers to the capital raised by a company or corporation through the issue and subscription of shares. ‘Bond’ is an interest-bearing security issued by governments, companies and some other organisations. ‘Barter’ refers to exchange (goods or services) for other goods or services without using money. ‘Bankruptcy’ means the state of being bankrupt. The given blanks can either use ‘bond’ or ‘stock’ as both are similar in meaning. Bonds and stocks are both securities, but the major difference between the two is that (capital) stockholders have an equity stake in a company (that is, they are owners), whereas bondholders have a creditor stake in the company (that is, they are lenders). Being a creditor, bondholders have priority over stockholders. Thus, ‘bond’ is the best fit word for the given blanks as it is clearly stated that it is a form of loan. This makes option 3 the correct answer.

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Q:

In the question given below, three paragraphs are given, which are jumbled. Find the correct sequence of these paragraphs so that they form a meaningful passage.
A. The power of compounding works the way it does because you are reinvesting the interest that you earn back into the instrument, besides giving it time to grow. Let’s simplify it further. Say in the first year you invest ₹100 and you get 10% annual return of ₹10. Next year, along with ₹110 (the first year principal amount and the interest amount), you will put another ₹100. The ₹10 you earned as interest gets reinvested, helping you grow your money faster.

B. To get a perspective, let’s turn to some numbers. Say you started investing ₹3,000 a month when you were 25, and go on till you are 60. At an average annual rate of 7% returns, your corpus will grow to ₹53.24 lakh. If you decide to start investing at the age of 35 years, even if you put aside double the amount— ₹6,000 per month — till the age of 60, the value of your corpus will be only ₹48.72 lakh. The example shows that you would need half the amount to get more in returns if you start investing early.
C. Adulting can’t wait when it comes to savings and investing. Why you may ask? If you delay your investments, how will you see the magic of compounding? When it comes to investing, you need to start early. In fact, you should start saving and investing as soon as you start earning. Compounding allows you to build a bigger corpus with a smaller amount.

A) BAC B) CAB
C) BCA D) ABC
 
Answer & Explanation Answer:

Explanation:

The correct sequence is CBA.

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Q:

Read the following passage carefully and choose the most appropriate answer to the question out of the four alternatives.

 

All art is, in an important sense, an escape. There is a sense in which the capacity to escape from his present experience, to use his accumulated consciousness of the past to project a vision of the future, is man's greatest and distinguishing ability. We must not forget the force of Aristotle's argument that poetry is valuable precisely because it shows men not simply as they are, but as they ought to be or (in terms more sympathetic to us today) as they are capable of becoming.

 

Aristotle argues that poetry is

 

A) valuable B) an escape
C) an art D) All of the above
 
Answer & Explanation Answer: A) valuable

Explanation:
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Q:

In the following question, the sentence given with blank to be filled in with an appropriate word. Select the correct alternative out of the four and indicate it by selecting the appropriate option.The mind is a tool to achieve ______ levels of consciousness, wisdom and bliss.

 

A) higher B) digaonal
C) vertical D) horizontal
 
Answer & Explanation Answer: A) higher

Explanation:
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Q:

In the following passage, some of the words have been left out. Read the passage carefully and select the correct answer for the given blank out of the four alternatives.

 

A century later, the philosophy community needs to take __________ the new challenge of moral deliberation on the most pressing issues of our difficult times. We have to revoke the suspension of ethics and morality ____________ our lives by initiating a dialogue on it. Foregrounding ethics, however, ___________ means undermining the epistemological or ontological questions that are inevitably there. One such beginning can be made by anchoring moral ________________ in fairness and justice —one founded on obligatory fairness towards the people and the planet, towards the earth and the environment, and above all justice towards one_________.

 

by anchoring moral ________________ in fairness

 

A) responsibility B) responsible
C) responsibly D) responsory
 
Answer & Explanation Answer: A) responsibility

Explanation:
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Q:

In the following question, out of the given four alternatives, select the one which best expresses the meaning of the given word.

 

Farcical

 

A) Serious   B) Absurd  
C) Analytical   D) Lame
 
Answer & Explanation Answer: B) Absurd  

Explanation:
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Q:

In the following question, the sentence given with blank to be filled in with an appropriate word. Select the correct alternative out of the four and indicate it by selecting the appropriate option.

 

Aryabhatta was the first astronomer to state ______ that the earth is round and it rotates on its axis.

 

A) sympthatically   B) automatically
C) emphatically   D) accidentally
 
Answer & Explanation Answer: C) emphatically  

Explanation:
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Q:

A sentence has been given in Active/Passive Voice. Out of the four given alternatives, select the one which best expresses the same sentence in Passive/Active Voice.

 

The cat caught a rat.

 

A) A rat has been caught by the cat. B) A rat was caught by the cat.
C) A rat is caught by the cat. D) A rat had been caught by the cat.
 
Answer & Explanation Answer: B) A rat was caught by the cat.

Explanation:
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