Question

Read the passage and answer the questions that follow :


The sharp fall in the Indian stock markets has affected investors in some less obvious

ways. As the Sensex fell from its peak of 21,000 in January to 13,000 in a span of six

months, it is not just that the investors have lost—in some cases the value of their

investments would have gone down by more than a third. An equally significant loss lies

in the shrinking of opportunities for investments, including some within the stock

market. A key question today is whether one should remain invested hoping for a market

revival in the near future, and it cannot be answered unequivocally. Barring some

exceptions, even the experienced and professionally qualified mutual fund managers,

portfolio managers, and other kinds of investment advisers could not read the markets

any more accurately than ordinary investors. Their advice and guidance were eagerly

lapped up when the stock prices were on a seemingly inexorable climb. Even if

forthcoming, they are much less relied upon nowadays. Mutual funds, the officially

recommended investment option for the lay investor, have not delivered on theirpromises. Many of their once-successful schemes are languishing, having fared worse

than their benchmark indices. There has understandably been a decline in the quantum of

assets they manage. The fact that the decrease is still within manageable proportions has

more to do with the lack of other avenues available to their investors.

Certain well known weaknesses of the Indian capital market have come to the fore and

are contributing to the uncertainty. The retreat of foreign institutional investors from the

equity markets has created a void. Forecasting stock price trends has become more

complex as global clues will have to be factored into the calculations to a greater extent.

The absence of a vibrant corporate bond market is keenly felt. Deposits with banks have

been the traditional investment avenue for those seeking a safe and regular return. With

inflation ruling well above 11.5 percent, most bank deposits that carry a maximum

interest of 9.5-10 percent are yielding negative returns. That in turn can discourage

savings, with its attendant deleterious consequences for capital formation and the

economy. Only medium-term reform of the financial sector can help banks cut down on

their transaction costs and narrow the spread between their lending and deposit rates. It is

no doubt a welcome development that the LIC and the private insurance companies are

reaching out to wider sections to mobilise contractual savings. For policymakers, it is

imperative to develop safe and attractive short-term investment avenues as well.


(a) On the basis of your reading of the passage make notes on it using recognizable

abbreviation (Min. 4) wherever necessary. Supply a suitable title. 5

(b) Write a summary of the passage in about 80 words.​

Answer 1

Answer:

its a comprehension so u read and answer ur own it tells us about our determination and consantration in studies so and passagr u write in ur own words