CAT Exam Model Paper 3 with solutions for free online practice

The current trend in crude oil prices gives a serious cause for concern and if this persists, many o f the calculations indicating further recovery and improved growth for the economy can be nullified. This year, the oil prices have risen from $\mathrm{\$}$ 70 per barrel to briefly touch $\mathrm{\$}$87, falling back somewhat thereafter. Such levels have not been seen since October 2008. That year, oil crossed a historic $\mathrm{\$}$140 per barrel. It is the continued upward trend (except for the period o f recession in the global economy) through the later part of the last year, which shows no signs o f abating. High oil prices, which rein in growth, will be a bad news for India in more than one way. Slower growth will take away some o f the buoyancy that revenue collection is now displaying. But, India’s problem is compounded by the fact that oil prices are not fully passed on and thus result in under-recoveries for the oil-marketing companies.