Read the passages given below and answer the questions that follow -
The great fear in Asia a short while ago was that the region would suffer through the wealth destruction already taking place in the U.S. as a result of the financial’ crisis. Stock markets tumbled as exports plunged and economic growth deteriorated. Lofty property prices in China and elsewhere looked set to bust as credit tightened and buyers evaporated. But with surprising speed, fear in Asia swung back to greed as the region shows signs of recovery and property and stock prices are soaring in many parts of Asia. Why should this sharp Asian turnaround be greeted with skepticism? Higher asset prices mean households feel wealthier and better able to spend, which could further fuel the region’s nascent rebound. But just as easily, Asia could soon find itself saddled with overheated markets similar to the U.S. housing market. In short the world has not changed, it has just moved places.
The incipient bubble is being created by government, policy. In response to the global credit crunch of 2008, policy makers in Asia slashed interest rates and flooded financial sectors with cash in frantic attempts to keep loans flowing and economies growing. These steps were logical for central bankers striving to reverse a deepening economic crisis. But there’s evidence that there is too much easy money around. It’s winding up in stocks and real estate, pushing prices up too far and to off fast for the underlying economic fundamentals. Much of the concern is focused on China, where government” stimulus efforts have been large an effective. Money in China has bet especially easy to find. Aggregate new bank lending surged 201% in the first” half of 2009 from the same period a year earlier, to nearly $1.1 trillion Exuberance over a quick recovery which was given a boost by China’s surprisingly strong 7.9% GDP growth in the second quarter -has buoyed investor sentiment not just for stocks but also for real estate.
Former U.S. Federal Reserve Chairman Alan Greenspan argued the bubbles could only be recognized it hindsight. But investors who have been well schooled in the dangers of bubbles over the past decade are increasingly wary that prices have risen too far and that the slightest bit of negative economic news could knock markets for a loop. These fears are compounded by the possibility the Asia’s central bankers will begin taking steps to shut off the money. Rumours that Beijing was on the verge oil” tightening credit led to Shanghai stocks plunging 5%. Yet many economists believe that, “there is close to a zero B possibility that the Chinese government will do anything this year that constitutes tightening.” And without a major-shift in thinking, the easy money conditions will stay in place. In a global economy that has produced more dramatic ups and downs than anyone’ thought possible over the past two years, Asia may be heading for another disheartening plunge.
1. What does the author want to convey through the phrase "the world has just moved places"?
(A) Asian governments are implementing the same economic reforms as the developed countries have done
(B) Asian countries don't believe in globalization
(C) Economic reforms have no meaning for them
(D) More than one of the above
(E) None of the above
2. Which of the following is not synonym of the word 'Skepticism' used in the passage?
(A) incredulity
(B) distrustfulness
(C) certitude
(D) More than one of the above
(E) None of the above
3. What was the rumour in China?
(A) China's GDP is surprisingly strong
(B) China is facing financial crunch
(C) The incipient bubble was the part of government policy
(D) More than one of the above
(E) None of the above
4. What was the great fear in Asia?
(A) Asia would lead the world economy
(B) Asia would increase its exim policy
(C) Asia would borrow loan from US Federal Bank
(D) More than one of the above
(E) None of the above
5. Choose the opposite of the word 'exuberance' used in the passage.
(A) lifelessness
(B) vibrancy
(C) vivaciousness
(D) More than one of the above
(E) None of the above
