Practice Set D for CLAT: Cryptocurrencies, like Bitcoin and others, often get criticized for being a bit like modern-day alchemy, where their value seems mystical and disconnected from reality. Some compare it to historical financial bubbles, like the South Sea Bubble or tulip mania, suggesting that it’s a risky game of speculation.

Critics argue that the enthusiasts behind cryptocurrencies are pushing for exemption from regulations, wanting to privatize money, and creating a system that could lead to financial disasters. While the existing money system may not be perfect, it’s seen as a more evolved and stable alternative compared to the uncertainties posed by cryptocurrencies.

Supporters of traditional fiat money highlight that it has been associated with more growth, better distribution, and a more effective response to economic crises. They emphasize that, unlike the centralized algorithm of Bitcoin, money in the current system is created through a network of decisions by loan officers, making it more humanized and closely tied to the real economy.

Questions

1. Which of the following does best describe attitude of the author towards rich people?

(A) Concerned

(B) Assiduous

(C) Indifferent

(D) Sympathetic

2. Which of the following is true in the context of the passage?

(A) The author defends the current money–credit system.

(B) The author rejects the idea that the central bank or government creates money and are busy debasing it in their self-interest.

(C) The author backs the protection of poor from menace of cryptocurrencies.

(D) All the above

3. Which rhetorical device is employed in ‘cryptocurrencies are just the latest alchemy’?

(A) Antithesis

(B) Metaphor

(C) Personification

(D) Synecdoche

4. Which of the following does best describe the passage?

(A) Argumentative and explanatory

(B) Descriptive and argumentative

(C) Narrative and explanatory

(D) Expository and argumentative

5. What do the cryptocurrency enthusiasts rely on?

(A) Exemption from regulation

(B) Privatization of money

(C) Disconnection of money from the economy

(D) All the above

Answers:

1. C

2. D

3. B

4. A

5. D

Read Also: Practice Set E for CLAT 2022 English Language Previous Year Questions