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Precis writing and reading comprehension, English homework help

Question Description

I’m studying and need help with a English question to help me learn.

1- I need to write a precis of the paragraph attached.

2- There is another file related to reading comprehension. The word limit is not defined for the answers. There are 4 questions.

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Make a precis of the following passage in 220 words, and give it a suitable title: (40 Marks) With the macroeconomic environment improving and some green shoots becoming visible in the economy, the possibility of ratings upgrades for some sectors has increased. But the ratings industry has come under the regulator’s scanner for failing to anticipate some defaults. We expect a further expansion of about 50 bps (basis points) in GVA (gross value added) growth this fiscal year. This is primarily based on the expectation of continued strength in consumption demand with urban consumer demand further enhanced by pay revision of government employees and a pickup in rural demand, boosted by a better monsoon. While pay revision and a favourable monsoon would exert counteracting forces on inflation, the outlook nevertheless remains relatively moderate, suggesting a continued possibility of further rate cuts. Additionally, improved transmission should engender a softening bias to interest rates that would also support consumption growth. We see some evidence of green shoots in certain sectors, including growth in road traffic, diesel consumption, domestic travel, commercial vehicles and scooter demand. It is important that the upturn is sustained and gets more broadbased. With sustained growth in consumption demand, we do expect a gradual pickup in private sector investments, especially, sectors that cater to domestic demand. While private sector capital investment in infrastructure is unlikely to show any significant traction in the near term, government/public sector projects in roads, railways and power transmission will continue to support growth. With the bottoming out of commodity prices and sluggish exports, the current account deficit is likely to widen to $30 billion in FY17 from $22 billion in FY16. Nevertheless, it is expected to remain modest at around 1.3% of GDP. Moreover, the anticipated capital inflows, particularly through FDI (foreign direct investment), should cover the same comfortably. As far as the ratings business is concerned, it is a business of derived demand. When economic activity picks up, financial markets typically do well, as the requirements for companies to raise funds also goes up, though there is a greater delta when capital investment also picks up. In the short term, growth in debt markets will be driven by a pickup in working capital requirements and refinancing activity with softer interest rates as well as comfortable liquidity in the system. We have already witnessed a pickup in short term commercial paper issuance. The credit quality cycle has been weak for the last couple of years. So, any improvement has to be seen in the context of a lower base. Notwithstanding this, we do expect an improvement in credit quality for businesses that were impacted, primarily, due to the cyclical slowdown with the pickup in the economy, improved liquidity and softer interest rates. Entities that were impacted due to overleveraging, with exposure to unviable projects, and won due to aggressive bids, may not further contribute to the decline but are unlikely to see any improvement in the medium term. Similarly, businesses exposed to global markets, including commodities, are unlikely to see any improvement, unless there are structural improvements either in their cost competitiveness or financial structure. The banking sector will show some increase in reported NPA (non-performing asset) numbers for some more quarters. This is because there is a lag in the way NPAs get recognised. Hence, there may be some pain for a couple of more quarters. The good thing is that many of these stressed assets have been recognised or are in the process of being recognised. To that extent, uncertainty is lower. The entire system seems well focused on delinquent assets. However, even when the NPA build-up slows down, credit costs are likely to remain high and continue to weigh on banks’ profitability. Banks need to find opportunities to grow in profitable segments with lower credit risks to break the vicious cycle. While the retail segment appears to be the flavour of the season, banks would need to exercise caution as competition has impacted risk-return matrix in a few segments. To maintain quality in the retail segment, robust underwriting, monitoring and recovery systems are critical. Direction: Q. No. 1 to 4 With the macroeconomic environment improving and some green shoots becoming visible in the economy, the possibility of ratings upgrades for some sectors has increased. But the ratings industry has come under the regulator’s scanner for failing to anticipate some defaults. We expect a further expansion of about 50 bps (basis points) in GVA (gross value added) growth this fiscal year. This is primarily based on the expectation of continued strength in consumption demand with urban consumer demand further enhanced by pay revision of government employees and a pickup in rural demand, boosted by a better monsoon. While pay revision and a favourable monsoon would exert counteracting forces on inflation, the outlook nevertheless remains relatively moderate, suggesting a continued possibility of further rate cuts. Additionally, improved transmission should engender a softening bias to interest rates that would also support consumption growth. We see some evidence of green shoots in certain sectors, including growth in road traffic, diesel consumption, domestic travel, commercial vehicles and scooter demand. It is important that the upturn is sustained and gets more broadbased. With sustained growth in consumption demand, we do expect a gradual pickup in private sector investments, especially, sectors that cater to domestic demand. While private sector capital investment in infrastructure is unlikely to show any significant traction in the near term, government/public sector projects in roads, railways and power transmission will continue to support growth. With the bottoming out of commodity prices and sluggish exports, the current account deficit is likely to widen to $30 billion in FY17 from $22 billion in FY16. Nevertheless, it is expected to remain modest at around 1.3% of GDP. Moreover, the anticipated capital inflows, particularly through FDI (foreign direct investment), should cover the same comfortably. As far as the ratings business is concerned, it is a business of derived demand. When economic activity picks up, financial markets typically do well, as the requirements for companies to raise funds also goes up, though there is a greater delta when capital investment also picks up. In the short term, growth in debt markets will be driven by a pickup in working capital requirements and refinancing activity with softer interest rates as well as comfortable liquidity in the system. We have already witnessed a pickup in short term commercial paper issuance. The credit quality cycle has been weak for the last couple of years. So, any improvement has to be seen in the context of a lower base. Notwithstanding this, we do expect an improvement in credit quality for businesses that were impacted, primarily, due to the cyclical slowdown with the pickup in the economy, improved liquidity and softer interest rates. Entities that were impacted due to overleveraging, with exposure to unviable projects, and won due to aggressive bids, may not further contribute to the decline but are unlikely to see any improvement in the medium term. Similarly, businesses exposed to global markets, including commodities, are unlikely to see any improvement, unless there are structural improvements either in their cost competitiveness or financial structure. The banking sector will show some increase in reported NPA (non-performing asset) numbers for some more quarters. This is because there is a lag in the way NPAs get recognised. Hence, there may be some pain for a couple of more quarters. The good thing is that many of these stressed assets have been recognised or are in the process of being recognised. To that extent, uncertainty is lower. The entire system seems well focused on delinquent assets. However, even when the NPA build-up slows down, credit costs are likely to remain high and continue to weigh on banks’ profitability. Banks need to find opportunities to grow in profitable segments with lower credit risks to break the vicious cycle. While the retail segment appears to be the flavour of the season, banks would need to exercise caution as competition has impacted risk-return matrix in a few segments. To maintain quality in the retail segment, robust underwriting, monitoring and recovery systems are critical. Answer briefly in your own words the following question based on the passage given above. (5 Marks) Which two factors are expected to stimulate gross value added growth for our economy? Answer briefly in your own words the following question based on the passage given above. (5 Marks) What, according to the writer, would offset the current account deficit? Answer briefly in your own words the following questions based on the passage given above. (5 Marks) ‘Rating Business is a business of derived demand’- Elucidate. Answer briefly in your own words the following question based on the passage given above. (5 Marks) What is expected to improve the credit quality of business? ...
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Final Answer

Attached.

Precis Writing and Reading Comprehension– Outline
I.

Part 1
A. Industry flexibility
B. Macroeconomic forces
II. Part 2
1. Question 1
A. Consumption rates
B. Rural demand
2. Question 2
A. Foreign Direct Investments
B. Productivity
3. Question 3
A. Demand of data
4. Question 4
A. Investing risks
B. Liquidity
C. Interest rates


Running head: PRECIS WRITING AND READING COMPREHENSION

Precis Writing and Reading Comprehension
Name
Institution

1

PRECIS WRITING AND READING COMPREHENSION

2

Precis Writing
Part 1
Different changes are experienced in the macroeconomic environment, and this means
that there is need to analyze the changes that take place in the various industries to the cyclical
changes. The rating industry experiences challenges due to the macroeconomic changes and this
mean that there is need to analyze the changes in helping to increase the efficiency of the
operation of the industry. The reliability in the rating industry helps in focusing on the
investment in the economy and the performance of the different institutions in the challenging
economic environment. It makes it necessary to ensure that there is support for the flexibility of
the industry in helping to shows the performance of the industries as it helps in boosting the
investor relations. The sustainability of the industry means that there is focus on the investments
made in the private sectors and the growth of the economy regarding the improvement of the
infrastructure in the market. It makes sure that there are increased flows of capital from the
investments and the areas that the government needs to boost in helping to increase the overall
growth of the economy (Eltis, 2016). The macroeconomic forces are known to affect the
economy, and on the enhancement of the growth of the industries, there is focus on activities
such as improving the exports and encouragement of foreign direct investment in increasing the
growth of the economy and the different economic segments.
Reading Comprehension Question
Part 2
Question 1
One of the factors that lead to the stimulation of gross value added growth is the increase
in the consumer demand and urban demand as it means that there is an increase in the growth of
the different segments of the economy. The consumption rates mean that there is focus on the
magnitude and the direction that different markets follow and the satisfaction of the client based
on the pricing of the products. There is an enhancement of the needs of the consumers and the
demand to live in the urban areas. The shift in the demographics in the economy lead to the
improvement of the demand for the products and services, and this is especially seen in the urban
areas. The fueling of the growth of the population in the urban areas means that there is increase
in demand and this leads to the imp...

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