CAT Verbal Ability Questions | CAT Para Jumbles questions
CAT/1995
Question . 167
Direction for Questions: Arrange sentences A, B, C, and D between sentences 1 and 6 to form a logical sequence of the six sentences.
1. Currency movements can have a dramatic impact on equity returns for foreign investors.
A. This is not surprising as many developing economies try to peg their exchange rates to the US dollar or to a basket of currencies.
B. Many developing economies manage to keep exchange rate volatility lower than that in the industrial economies.
C. India has also gone in for the full float on the current account and abolished the managed exchange rate.
D. Dramatic exceptions are Argentina, Brazil, and Nigeria.
6. Another emerging market-specific risk is liquidity risk.
Explanatory Answer
Method of solving this CAT Verbal Ability Question from Para Jumbles question
(b) The first is a general sentence, then followed by a specific one, i.e. on India in C then followed by DAB taken in context. First giving an exception and then reaching a general conclusion.