CAT Exam Model Paper 1 with solutions for free online practice

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Directions (Q. No. 25-28) Arrange the following sentences in the correct order.

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Question : 25 of 100

Marks: +1, -0

1. Let us take a look at the manner in which the traditional bank adds value to the customer.

2. The ability to retain deposits, in itself, is not enough to ensure long-term survival and growth.

3. The ability to deploy invested funds into productive economic activity at a higher rate of return, hence contributing to the prosperity o f both the economy and the institution, is the other loop in the banking cycle.

4. Further, as only a small portion of the actual deposit base is retained with the bank in a liquid form, the very survival of the bank lies in building enough trust with its clientele so as to prevent the occurrence of a sizeable chunk of simultaneous customer withdrawal (a run on the bank).

5. The bank’s basic job is risk absorption- it takes money, which has a lot of attached risk and provides the customer an assured rate of return.

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