Comprehension
Cryptocurrencies are a terrible thing. They are the essence of a Ponzi scheme whose value is based entirely on a greater fool prepared to buy it. The promise of alchemy-turning lead into gold has bewitched humanity throughout the ages and cryptocurrencies are just the latest alchemy. Do not get me wrong, if rich people want to lose their money, in this or any other way, they should be allowed to do so. The rich should be the vanguards of new things in case something unforeseen and good falls out of them. But we need to protect those vulnerable consumers whose lives are such that almost any get-rich-quick schemes will be seductive, and seven out of 10 times, they will lose their life savings. Cryptocurrencies are today's South Sea Bubble - one of the earliest recorded financial bubbles that took place in the 1720s' Britain. Meme-based currencies like Dogecoin, Dogelon Mars and Doge Dash remind me of the infamous plan of one company during the South Sea Bubble to raise money “for carrying on an undertaking of great advantage; but nobody to know what it is.”
The cryptocurrency bubble is worse than tulip mania. Through the veil of technology, cryptocurrency enthusiasts are leaning on policy-makers to permit them to be exempt from regulation, privatize money, and make money so disconnected from the economy that it would reap financial disaster. There are many reasons to avoid financial disasters, but one of them is that they ratchet up poverty and inequality. The current money-credit system is not perfect, but like democracy, it is the worst system barring all the others. It has evolved from the ashes of the system cryptocurrency enthusiasts are trying to resurrect.
The current system is vulnerable to attack because money is little understood. Cryptocurrency enthusiasts have attracted a following based on the fiction that the central bank or government creates money and are busy debasing it in their self-interest. This is not the case, but then again, there is some overlap between cryptocurrency advocates, conspiracy theorists, and anti-vaxxers. The time has come for someone to stand up for the current fiat money system and explain that while it could be better still, it has been associated with far more growth, much more distributed, and has responded better to economic crisis than what came before.
In today's money-credit system, banks create money when they issue a loan and place the loan's proceeds into the account of their customers, creating a deposit. Money is, in fact, a tradable debt. The bank's deposit can be used as cash because the bank is a regulated issuer of loans and deposit-taker, which gives the deposit credibility and convertibility. The central bank only influences the creation of money indirectly by its regulatory requirement that a proportion of the loans need to be funded by shareholder's profits. They need to have skin in the game. Money creation then is based on thousands of separate decisions by loan officers and is more distributed than a centralized algorithm like Bitcoin. And its supply is determined by the private demand for loans, which means it is closely aligned to the economy.
Question: 1

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

Updated On: Jul 14, 2026
  • Concerned
  • Assiduous
  • Indifferent
  • Sympathetic
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The Correct Option is C

Solution and Explanation

The clearest signal here is the contrast the author draws between two groups in the same sentence. Vulnerable consumers are described as people "we need to protect," a direct statement of concern. Rich people, by contrast, are described as free to lose their money "in this or any other way" without objection, and are even framed as useful "vanguards" for testing new, risky things.

This contrast rules out "concerned" and "sympathetic," both of which are reserved in the passage for the vulnerable, not the rich, and "assiduous" does not fit at all since the author shows no diligent effort on the rich people's behalf. What is left is a tone of not minding either way what happens to the rich, which is indifference.

Therefore, the correct answer is Indifferent.

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Question: 2

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

Updated On: Jul 14, 2026
  • The author defends the current money–credit system.
  • The author rejects the idea that the central bank or government creates money and are busy debasing it in their self-interest.
  • The author backs the protection of poor from menace of cryptocurrencies.
  • All the above
Show Solution

The Correct Option is D

Solution and Explanation

Whenever an MCQ's last option is "All the above," check the other options for contradictions first. If none, the combined option is the safest correct choice.

Option A (defending the existing money-credit system) and Option B (rejecting the claim that central banks/government debase money in self-interest) are not opposed to each other, in fact, B supports A: if the author trusts the current system, the author would naturally reject the accusation that it is being run dishonestly.
Option C (protecting the poor from cryptocurrency risk) fits alongside A and B as a natural extension: someone who trusts the regulated money system and doubts the "debasement" charge against it would also worry about unregulated cryptocurrency exposing vulnerable people to loss.
Since A, B and C reinforce rather than contradict one another, they can all be true within the same passage at the same time.

This makes All the above the correct answer.

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Question: 3

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

Updated On: Jul 14, 2026
  • Antithesis
  • Metaphor
  • Personification
  • Synecdoche
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The Correct Option is B

Solution and Explanation

A quick way to identify a metaphor is to check two things: first, whether the sentence directly calls one thing another (not "like" or "as," which would make it a simile), and second, whether it transfers a specific quality from one thing onto the other.

"Cryptocurrencies are just the latest alchemy" directly states that cryptocurrencies ARE alchemy, with no comparison word used. Alchemy historically means a fraudulent or illusory promise of turning something worthless into gold, and that quality of false transformation is what gets transferred onto cryptocurrencies by this phrase.
This rules out antithesis (no contrast of opposites is set up), personification (no human trait is given to cryptocurrencies), and synecdoche (alchemy is not a part standing for the whole of cryptocurrencies).

So the device at work is a direct, quality-transferring comparison, which makes the answer Metaphor.

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Question: 4

Which of the following does best describe the passage?

Updated On: Jul 14, 2026
  • Argumentative and explanatory
  • Descriptive and argumentative
  • Narrative and explanatory
  • Expository and argumentative
Show Solution

The Correct Option is A

Solution and Explanation

To classify a passage's style, ask two questions: does it take a side (argumentative), and how does it support that side (through description, storytelling, plain information, or explanation of reasoning)?

The passage clearly takes a side: it defends the current money system and pushes back against cryptocurrency enthusiasm, so "argumentative" is confirmed as one half of the answer.
For the second half, the passage supports its stance by walking through reasoning, what money is, how it is created, why the "debasement" claim doesn't hold, rather than describing a scene (ruling out "descriptive"), telling a story with events and characters (ruling out "narrative"), or staying neutral and fact-only (ruling out plain "expository").

Since the passage argues its case AND explains its reasoning, both halves point to the same pairing: Argumentative and explanatory.

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Question: 5

What do the cryptocurrency enthusiasts rely on?

Updated On: Jul 14, 2026
  • Exemption from regulation
  • Privatization of money
  • Disconnection of money from the economy
  • All the above
Show Solution

The Correct Option is D

Solution and Explanation

When a question lists several claims and then offers "All the above," check whether the claims describe different aspects of the same idea rather than competing explanations.

Here, wanting freedom from regulation, wanting money creation moved into private hands, and wanting money delinked from the real economy are three separate but compatible goals, a person or group can hold all three views at once, they don't cancel each other out.
Since the passage attributes each of these reliances to cryptocurrency enthusiasts as part of the same critique, picking just one option would leave out the other two equally valid parts of the picture.

That makes the complete answer All the above.

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