NCHMCT JEE 2015 Question Paper with solutions for online practice

Directions (Qs. 176 to 200):
Study the passages below and answer the questions that follow each passage.
Passage-I
The collapse in the price of oil has come as a big shock not only to the Russian economy, but also to its political system. As the price falls from its peak earlier in the year of $ 115 a barrel to below $ 50, the government faces some harsh choices. Fifty two per cent of Russia’s budget revenues are derived from the energy sector. And even though the energy sector comprises only 27% of its total economy, the crisis has deflated much of Russia’s self-confidence, and will in the immediate term force the adoption of some drastic economic measures. In the long term, it may set Russia on a new political path. Sanctions and the downward momentum of oil prices have inflicted powerful economic damage on Russia. Government actions halted the slide, notably pumping capital into the banking system and ruling out capital controls. This maintained confidence in the banks and prevented panic withdrawals by depositors. Yet if interest rates were kept at 17%, the economy would be ruined. Investment, already low, would fall further. The oligarch class is deeply opposed to the imposition of capital controls, but the government may well soon be running out of other options. The so-called policy of “deoffshorisation” and nationalisation of the elites has been at the heart of Putin’s third-term presidency, and it is now accelerated by the sanctions and the economic crisis as a whole. The likelihood of a potential split between Putin and the economic elite is low, yet we know that when a bank run starts, it is almost impossible to stop. Putin has done his best to not to let it show in personal appearances. In his annual address in December, Putin outlined the key challenges facing Russia. He indicated that rather than intensifying state controls, the crisis would force Russia to liberalise and to develop a more dynamic small and medium business sector. Above all, he suggested that Russia would not turn to the past for models of its future. The speech was a surprisingly measured response to the challenges at that time. It refused to accept that Russia was isolated, and it outlined a surprisingly liberal trajectory for Russin’s development - at a time where many in the west were expecting Putin to tighten the screws and isolate itself further, The system, however, is built to sustain inertia, and operates within the framework of balancing the various factions. The crisis may precisely force a breakout from the economic dead end and political stalemate to achieve a meaningful rejuvenation of the polity and the economy. Putin is a master at the unexpected feint and demarche, and as a result of this crisis, he may well surprise us yet.