Verbal Ability

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P). Exchange control does not altogether prohibit Indian banks keeping open positions during the course of a day.

1). Indeed, unless they are willing to take open positions, they will cease to be market-makers.

2). For market-makers offering two-way quotes in the international markets, open positions are far more common.

3). Thus, depending on the policy of a bank, dealers may be allowed to take intra-day positions in order to make profit.

4). For instance, a dealer expecting the dollar to weaken during the day might deliberately create, through customer transactions and transaction in the inter-bank market, an oversold position in the hope of squaring it later during a day at a profit, should his expectation about the dollar weakening materialise.

Q). Large overbought or oversold positions are often deliberately built up in the hope of profiting from price movements.









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Option(C) is correct

'Thus' of 3 is an explanation of P; 'for instance' of 4 an example. 'Indeed' of 1 has to make it one following a sentence which is 'open portion' talked about in 2.

(3) Comment(s)


Is there anybody can explain how to use articles or other hints to order this question?


I'm also not getting it

Ggunjan Chopra

Please explain.i m nt gettin it.