CAT 2020 Question Paper | VARC Slot 3

CAT Questions

This is a medium difficulty question from the passage Economic Crisis that appeared on CAT 2020 Slot 3. This is a must-try-to-attempt kind of question because of its construction (Supportive, Not Supportive). Read tons and tons of free articles from Bharath’s Curated Reading List to master your VARC Preparation. Reading and understanding the passage is important to crack the and in your CAT Exam.

The passage below is accompanied by a set of questions. Choose the best answer to each question.

I’ve been following the economic crisis for more than two years now. I began working on the subject as part of the background to a novel, and soon realized that I had stumbled across the most interesting story I’ve ever found. While I was beginning to work on it, the British bank Northern Rock blew up, and it became clear that, as I wrote at the time, “If our laws are not extended to control the new kinds of super-powerful, super-complex, and potentially super-risky investment vehicles, they will one day cause a financial disaster of global-systemic proportions.” . . . I was both right and too late, because all the groundwork for the crisis had already been done—though the sluggishness of the world’s governments, in not preparing for the great unraveling of autumn 2008, was then and still is stupefying. But this is the first reason why I wrote this book: because what’s happened is extraordinarily interesting. It is an absolutely amazing story, full of human interest and drama, one whose byways of mathematics, economics, and psychology are both central to the story of the last decades and mysteriously unknown to the general public. We have heard a lot about “the two cultures” of science and the arts—we heard a particularly large amount about it in 2009, because it was the fiftieth anniversary of the speech during which C. P. Snow first used the phrase. But I’m not sure the idea of a huge gap between science and the arts is as true as it was half a century ago—it’s certainly true, for instance, that a general reader who wants to pick up an education in the fundamentals of science will find it easier than ever before. It seems to me that there is a much bigger gap between the world of finance and that of the general public and that there is a need to narrow that gap, if the financial industry is not to be a kind of priesthood, administering to its own mysteries and feared and resented by the rest of us. Many bright, literate people have no idea about all sorts of economic basics, of a type that financial insiders take as elementary facts of how the world works. I am an outsider to finance and economics, and my hope is that I can talk across that gulf.

My need to understand is the same as yours, whoever you are. That’s one of the strangest ironies of this story: after decades in which the ideology of the Western world was personally and economically individualistic, we’ve suddenly been hit by a crisis which shows in the starkest terms that whether we like it or not—and there are large parts of it that you would have to be crazy to like—we’re all in this together. The aftermath of the crisis is going to dominate the economics and politics of our societies for at least a decade to come and perhaps longer.

Question 18 : According to the passage, the author is likely to be supportive of which one of the following programmes?

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Video Explanation

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Explanatory Answer

The author laments the fact that many bright, literate people have no idea about all sorts of economic basics. So, he is likely to be supportive of an educational curriculum that promotes developing financial literacy in the masses.

Note that option A is incorrect as it talks of economic "research". There is no basis for options C and D in the passage.

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The question is "According to the passage, the author is likely to be supportive of which one of the following programmes?"

Hence, the answer is, "An educational curriculum that promotes developing financial literacy in the masses."

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