CAT Question of the Day Answer the following questions based on the information given below.
In traditional economic models, increased liquidity results in more lending, mostly to investors and sometimes to consumers, thereby increasing demand and employment. But consider a case like Spain, where so much money has fled the banking system – and continues to flee as Europe fiddles over the implementation of a common banking system. Just adding liquidity, while continuing current austerity policies, will not reignite the Spanish economy. So, too, in the US, the smaller banks that largely finance small and medium-size enterprises have been all but neglected. But lending would be inhibited even if the banks were healthier. After all, small enterprises rely on collateral - based lending, and the value of real estate – the main form of collateral – is still down one-third from its pre-crisis level.
What does the passage imply?
| OPTIONS | | |  | 1) | Lower interest rates are required to revive real estate prices. | | | 2) | Smaller banks are more important than mega-banks. | | | 3) | Adding liquidity is not enough to boost lending. | | | 4) | Traditional economic models are wrong. |
Tip of the Day As a part of your personal interview preparation, spend time articulating your strengths and weaknesses- at least three each. Then think about 2 instances or events where you displayed each of these. Last year's Question of the day (05-Feb-12) Before the arrival of J. K. Rowling, Britain's bestselling author was comic fantasy writer Terry Pratchett. His Discworld books, beginning with The Colour of Magic in 1983, satirise and parody common fantasy literature conventions. Pratchett is repeatedly asked if he "got" his idea for his magic college, the Unseen University, from Harry Potter's Hogwarts, or if the young wizard Ponder Stibbons, who has dark hair and glasses, was inspired by Harry Potter. Both in fact predate Rowling's work by several years; Pratchett jokingly claims that yes he did steal them, though "I of course used a time machine." The BBC and other British news agencies have emphasised a supposed rivalry between Pratchett and Rowling, but Pratchett has said on record that, while he doesn't put Rowling on a pedestal, he doesn't consider her a bad writer, nor does he envy her success.
What can be concluded about Pratchett and Rowling's relationship from the passage?
| OPTIONS | | | | | 1) | They mutually respect each other and repeatedly laud each other's work. | | | 2) | They don't know that the other person exists. | | | 3) | Pratchett is envious of Rowling's success and wishes he could've seen the same. | | | 4) | Pratchett and Rowling may not personally know each other, and there is officially no bad blood between them despite Rowling robbing Pratchett of his "bestselling author" title. | | | 5) | Pratchett and Rowling are really close friends and allies. |
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