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The question is from CAT Sentence Elimination. CAT exam will have 2~3 questions from Sentence Elimination. Solve CAT Questions from Sentence Elimination to get more practice and 2IIMs CAT questions bank provides you with CAT questions from Odd Sentence out that can help you gear for CAT Exam.

Question 50: A. The biggest fallout of NPA accumulation, particularly in the public sector banks, is that industrial credit growth rate has plunged in the last few years.

B. Without doubt, there are cases of bad loans where the debt repayment problems have been caused by diversion of funds.

C. Non-performing assets (NPAs) or bad loans in the Indian banking system have arisen primarily for reasons beyond the control of public sector bank management.

D. But the bulk of the problem has been caused by unexpected changes in the economic environment: timetables, exchange rates, and growth rate assumptions going wrong.

  1. A
  2. B
  3. C
  4. D

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Explanatory Answer

Method of solving this CAT Question from Sentence Elimination:

The option to be eliminated is A, which talks of the effect of NPA accumulation – a plunge in industrial credit growth rate. None of the other sentences relate to this.

B is slightly tricky to place right away, so let's look at C and D.

C states that NPAs have arisen in the Indian banking system due to reasons beyond the control of public sector banks. So what are the reasons for this problem? D provides the answers. So, D follows C.

Now, according to B, there are cases of bad loans where the repayment problems have been caused by "diversion of funds". Clearly, B relates to the idea in C and D, as it talks of why loans turn bad. B concedes that some bad loans are caused by diversion of funds. D, on the other hand, states the reasons for the bulk of the problem. So, D follows B.

CBD makes a cogent paragraph.

The question is " Choose the Sentence that does not fit in "

Hence, the answer is Sentence A

Choice A is the correct answer.

 


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