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The question is from CAT Parajumbles. CAT exam will have 4~5 questions from Sentence Rearrangement. Solve CAT Questions from Parajumbles to get more practice and 2IIMs CAT questions bank provides you with CAT questions that can help you gear for CAT Exam. .

Question 33: A. Every time financial speculation creates a crisis, governments are expected to tax their citizens and use that money to save banks and financial institutions.

B. Liberalism insisted on the separation of the state and the market, and decried government interference in markets.

C. Even if one argues, as some do, that liberal capitalism was always to some extent state capitalism, this signifies a major shift.

D. Neo-liberalism believes that governments should intervene in markets — but only on the side of banks, finance capitalists and lending agencies.

  1. ADBC
  2. BADC
  3. DABC
  4. BDAC

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Explanatory Answer

Method of solving this CAT Question from Sentence Rearrangement:

Sentence B talks of liberalism and how it decried government interference in markets. Notice that of the given sentences, B is the only sentence in past tense. It is likely that B is the first sentence of the paragraph.

Now, considering the other three, the only sentence that links to B is D, which talks of neo-liberalism and how it believes in government intervention in markets, on the side of banks and financial institutions. D follows B, presenting the contrast between the two views.

Sentence A talks of governments being expected to “save banks and financial institutions” when there is a crisis due to “financial speculation”. This relates to neo-liberalism.

Sentence C refers to a “major shift”. What shift? The shift in thinking that governments should intervene in markets to favor financial institutions. So, C follows the sentence group BD.

Now, while both A and C make sense immediately after D, C is a better choice to complete the paragraph, compared to A. Sentence A adds to D, providing more information on neo-liberalist thinking. C, on the other hand, sums up the key idea of the paragraph that neo-liberalism is very different from liberalism.

The question is " Arrange the sentences in the correct order "
The order is BDAC

Hence, the answer is BDAC

Choice D is the correct answer.

 


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