Read the following passage carefully and answer the questions given below it. Certain words are printed in bold to help you to locate them while answering some of the questions.
The current global food situation is very serious and hence, we need to understand the reasons for such a dramatic increase in food prices in a short period. It is argued that increases in energy costs are resulting in cost push inflation but the contribution of energy costs to overall costs in agriculture may not explain the huge increase in food prices. Related to the current elevated energy prices, there has been a diversion of corn and edible oils to bio-fuels, which is significantly influenced by policy mandates. Very clearly this diversion to bio-fuels is a policy induced new reality, which coincided with price escalation in precisely those products and hence, is note worthy.
The financialization of commodity trade and current extraordinary conditions in global financial markets could have influenced the spurt in prices. The recent reductions in interest rates in the U.S. and the injection of liquidity have resulted in investors seeking new avenues such as commodity markets, in view of the turbulence in financial markets and the low returns in treasuries. The relatively easy liquidity and low interest rates, by themselves, make holding of inventories attractive and thus induce greater volatility in commodity markets. The weakening of the U.S. dollar is also advanced as a reason for the recent volatility in commodity markets, including food items. It is evident that this phenomenon is now also coinciding with the across the board rise in food prices.
In brief, while there are demand and supply side pressures on food items, there is considerable merit in the argument that the recent extraordinary increases in food prices are closely linked to public policy responses to high energy costs in advanced economies, and the turbulence in financial markets and financial institutions. It is said that the impact of such policy induced diversion of food to bio-fuels is significant at this juncture and reflects a preference to fill the fuel tanks of automobiles rather than fill the empty stomachs of people. Similarly, it is sometimes held that the weight accorded to financial stability in public policy may now be at the expense of stability in real sector – especially of sensitive commodities like food. At the same time, there is a general consensus that public policy in regard to food in many economies around the world has not provided adequate incentive to farmers to increase the supply of food and other agricultural products to comfortably match the growing demand over the medium term.
Choose the word/group of words which is most nearly the SAME in meaning as the word given in bold as used in the passage.
QUESTIONS:
1. None of these
(A) acceleration
(B) surplus
(C) baiting
(D) inspiration
(E) encouragement
2. advanced
(A) put forward
(B) set aside
(C) taken over
(D) marched forward
(E) escalated further
3. turbulence
(A) tranquility
(B) certainty
(C) turmoil
(D) restless
(E) lackluster
Choose the word which is most OPPOSITE in meaning of the word given in bold as used in the passage.
1. consensus
(A) deviant
(B) disagreement
(C) dejection
(D) denial
(E) dissuasion
2. elevated
(A) raised
(B) stabilized
(C) inclined
(D) fallen
(E) slanted
3. volatility
(A) agitation
(B) effervescence
(C) optimism
(D) disparity
(E) inactivity
(Source: Punjab National Bank P.O Exam – 2009)
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