Exams > Cat > Verbal
READING COMPREHENSION SET I MCQs
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B
This question asks you to infer, from information stated in the passage, a way in which the role of large institutions as stockholders differs from that of the “old-style capitalist”.
The best answer is B. According to the passage, the old-style capitalists were able to play a dominant role in the corporations in which they held stock because they owned enough stock to do so. The passage also states that large institutions are legally barred from owning a majority of a company’s stock. From this it can be inferred that large institutions, because their ability to own stock is limited, do not play as dominant a role in the corporations of which they are stockholders as did the old-style capitalists.
Choice A is not correct. The passage does not indicate whether large institutions invest in many companies, few companies, or even just a single company.
Choice C is not the correct answer. The passage does not mention brokers or any other parties who might influence the investment choices made by large institutions.
Choice D is incorrect.The author notes that an institution’ sale of a large amount of stock would, in fact, decrease the stock’s value.
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D
This question asks you to determine the main purpose served by the second paragraph of the passage in the context of the passage as a whole.
The best answer is D. The second paragraph is devoted to the author’s recommendations of certain actions, namely, the adoption of new regulations concerning the holding and selling of stock by institutional investors.
Choice A is not the correct answer. The author of the passage identifies a problem-short-term trading done by institutional shareholders-but does so in the first paragraph, not in the second.
Choice B is incorrect. In the second paragraph, the author recommends new regulations regarding shareholding by institutions. Although the author mentions some consequences of the suggested regulations, the author clearly views these consequences as desirable.
Choice C is not correct. The second paragraph contains suggestions about new ways to regulate shareholding by institutions. Although the author asserts that certain effects would result from the proposed regulations, these effects are not explained.
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A
Looking at the case given in the 3rd paragraph, followed by the explanation in the 4th paragraph, we understand that the passage talks about the unintentional consequences of trade laws. Hence, option A is the most suitable answer.
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D
The best answer is D. The first paragraph of the passage identifies a research method (recording life stories) and explains the method’s uses. The second and third paragraphs explain limitations of the method’s results. The final paragraph explains why the research method is useful despite its limitations. Choice A, B, and C are incorrect because only one research method is discussed, not two.
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C
The best answer is C. The passage suggests that trade laws can be used against the US companies - this isn't what is intended.
Choice A - mentions nothing about US companies competing outside their own country. Choice B - When an answer choice makes a comparison, aspects of all sides should be known, which is not the case here. Choice D - This goes directly against the passage statements: because now it is difficult to tell who is the parent company.
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C
The best answer is C. Lines 22-23 suggest that ethnologists “rarely spent enough time with the tribes they were observing.” Ethnologists who did not spend enough time with tribes they were observing were unlikely to be sufficiently familiar with the culture and customs of those tribes. Such ethnologists nevertheless attempted to describe the lives of tribal members. This attempt can be seen as analogous to the announcer’s attempt to describe the actions in a team sport with which he is unfamiliar. Choice A, B, and D can be eliminated because the passage does not suggest ethnologists deliberately withheld information.
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D
The best answer is D.
Looking at the answer options, the last paragraph talks about a particular case that illustrates a problem presented more generally in the previous paragraph.
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B
The best answer is B. In the passage the author states that “The bizarre aspect of the complaint was that a foreign conglomerate…was crying for help against a United States company…”. It can be inferred from the passage that import relief laws were designed to protect United States companies from foreign competition. Thus, the lodging of a complaint by a foreign conglomerate against a United States company violated the intent of the laws.
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C
The best answer is C, which can be inferred from the case given in the 3rd paragraph.
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C
The best answer is C. On reading the 2nd and 3rd paragraphs, we can conclude that the danger mentioned in option C is warned and none of the remaining options are stated in the passage.