It is generally accepted that if the monsoon is poor in any given year, it will…
NIFT 2017 · Case Study · 5 questions
It is generally accepted that if the monsoon is poor in any given year, it will have a significantly negative impact on the lives of millions. Some lives, such as those of the farmers, are affected directly because of poor crop yield; others are affected indirectly as economic growth slows down. Similarly, the years with good monsoon bring smile and prosperity to lives of many. For instance, India recorded a sha? lives of many. For instance, in its rate of growth after years of good performance in the recent years. This unfortunate cycle affects the lives of millions of poor and helpless. But it need not be this way. In the jargon of financial economics, monsoon risk is a diversifiable risk. In other words, it is an insurance risk. Though one might wonder who will provide the insurance against poor monsoons if everyone is adversely affected by poor monsoon? The answer is - the international investor.
Question 1
Examine the following inference in the context of the passage and decide its degree of truth or falsity. Inference: Majority of the people outside India are not affected by the poor monsoon in India.
Examine the following inference in the context of the passage and decide its degree of truth or falsity. Inference: Monsoons in India have been good only in the alternate years during the past few years.
Examine the following inference in the context of the passage and decide its degree of truth or falsity. Inference: There has been considerable growth in India economy during the recent years.
Examine the following inference in the context of the passage and decide its degree of truth or falsity. Inference: Scanty monsoon adversely affects the lives of only the poor people in India.
Examine the following inference in the context of the passage and decide its degree of truth or falsity. Inference: All over the world, diversifiable risks are always covered by the insurance companies.
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