Comprehension

YouTuber Nas Daily in one of his videos named him as the Most Generous Billionaire who wanted to donate all his wealth to charity. But ten months later, ‘[1]’ is no longer a billionaire. He is alleged to have caused massive losses worth $1 billion to investors. Known by his initials, he is the co-founder and former CEO of FTX, one of the biggest cryptocurrency exchange which has recently filed for bankruptcy in the US.
Once a billionaire with an estimated wealth of $26 billion at peak, according to Bloomberg estimates, [1] has seen his wealth been entirely wiped out. [1] studied physics at Massachusetts Institute of Technology (MIT) and traded currencies, futures and exchange-traded funds before moving to crypto trading, setting up [2] in 2017. & nbsp;
[1] teamed up with Gary Wang, a former software engineer at Google and a fellow MIT graduate, to launch FTX in 2019. The company offered trading on crypto tokens and derivatives. At the start of 2022, investors valued FTX and its U.S. operations at 40billion.[1]transferred10 billion in customer funds to his hedge fund, [2] without publicly disclosing it, many say this become the reason for collapse of his empire.

Question: 1

Which person’s name has been replaced with ‘[1]’ in the passage above?

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When a question references FTX, crypto collapse, or the initials “SBF,” it is pointing to Sam Bankman-Fried.
Updated On: Jul 10, 2026
  • Mike Novogratz
  • Brian Armstrong
  • Changpeng Zhao
  • Sam Bankman-Fried
Show Solution

The Correct Option is D

Approach Solution - 1

Since three of the four names run exchanges or firms that are still standing, it helps to focus on which one is tied to a company that actually went bankrupt.

  1. Mike Novogratz: His firm, Galaxy Digital, took losses during the 2022 crypto downturn but continued operating, unlike the company in the passage.
  2. Brian Armstrong: Coinbase went through a difficult year in 2022 but stayed in business and never filed for bankruptcy.
  3. Changpeng Zhao: Binance remained the largest exchange in the world through this period and was not the one that collapsed.
  4. Sam Bankman-Fried: FTX, the exchange he co-founded, filed for bankruptcy in November 2022 after customer funds were found to be misused, matching the passage's description precisely.

Only the company tied to Bankman-Fried actually went bankrupt in the way the passage describes, so he is the person referred to as [1].

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Approach Solution -2

Another way to work through the options is to check each person's educational and career background against the specific clues the passage gives, an MIT physics degree and a co-founder named Gary Wang.

  1. Mike Novogratz: Novogratz has a background in finance and previously worked at Goldman Sachs and Fortress Investment Group, not MIT physics or FTX.
  2. Brian Armstrong: Armstrong studied computer science and economics and built Coinbase separately, with no link to Gary Wang or FTX's founding.
  3. Changpeng Zhao: Zhao's background is in software engineering, and he built Binance independently of the people named in the passage.
  4. Sam Bankman-Fried: Bankman-Fried studied physics at MIT and later teamed up with fellow MIT graduate Gary Wang to launch FTX in 2019, exactly matching the biographical details given.

Matching the MIT physics and Gary Wang details, which are very specific, confirms the person is Sam Bankman-Fried.

So the correct answer is Sam Bankman-Fried.

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Question: 2

Which hedge fund’s name has been replaced with ‘[2]’ in the passage above?

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In questions involving the FTX scandal, remember the two entities: FTX (exchange) + Alameda Research (hedge fund).
Updated On: Jul 10, 2026
  • Black Rock Advisors
  • Alameda Research
  • AQR Capital Management
  • Man Group
Show Solution

The Correct Option is B

Approach Solution - 1

A useful check here is timing, the passage says funds moved to this hedge fund without disclosure, which fits a firm closely tied to FTX rather than an outside asset manager.

  1. Black Rock Advisors: An independent, heavily regulated firm that would not quietly receive undisclosed transfers from a crypto exchange.
  2. AQR Capital Management: A well-established quant fund with no operational link to FTX, so this kind of undisclosed transfer does not fit its profile.
  3. Man Group: A large, independently managed fund with its own client base, unconnected to FTX's internal dealings.
  4. Alameda Research: This firm existed specifically as Bankman-Fried's own trading arm before FTX was even created, so money could move between the two without outside oversight, matching the passage's description of an undisclosed transfer.

Since Alameda is the only fund with that close, undisclosed relationship to FTX, it is the correct answer.

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Approach Solution -2

Another way to identify the fund is to recall the scale of the transfer described, about $10 billion, and check which fund's known troubles match that figure.

  1. Black Rock Advisors: No reports tie a $10 billion undisclosed transfer from FTX to this firm.
  2. Alameda Research: Investigations after the FTX collapse found that close to $10 billion in customer deposits had been funnelled into Alameda to cover its trading losses, matching the figure and the story in the passage exactly.
  3. AQR Capital Management: This fund's public troubles, if any, relate to normal market performance, not to receiving secret transfers from FTX.
  4. Man Group: Likewise, no such transfer involving this firm has been reported.

The specific $10 billion figure lines up only with Alameda Research, confirming it as the hedge fund named in the passage.

So the correct answer is Alameda Research.

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Question: 3

This person was once named “the world’s youngest self-made female billionaire” by Forbes magazine and is the founder of the company Theranos. What is the name of this person?

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Theranos scandal → Elizabeth Holmes. Linking major business controversies with their founders helps in quick recall.
Updated On: Jul 10, 2026
  • Elizabeth Holmes
  • Eren Ozmen
  • Fan Hongwei
  • Diane Hendricks
Show Solution

The Correct Option is A

Approach Solution - 1

Since the question names a specific company, Theranos, the fastest check is simply which of these four people founded a company by that name.

  1. Eren Ozmen: Her company is Sierra Nevada Corporation, not Theranos.
  2. Fan Hongwei: Her company is Hengli Group, not Theranos.
  3. Diane Hendricks: Her company is ABC Supply, not Theranos.
  4. Elizabeth Holmes: Holmes is the founder of Theranos, the blood-testing startup that made her, for a period, the world's youngest self-made female billionaire before the company's claims were shown to be false.

Since Theranos belongs only to Elizabeth Holmes among the four, she is the answer.

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Approach Solution -2

Another approach is to recall how each of these four billionaires' stories ended, since the question's phrasing hints at someone whose peak title did not last.

  1. Eren Ozmen: Ozmen continues to run Sierra Nevada Corporation successfully, with no dramatic fall from billionaire status.
  2. Fan Hongwei: Fan remains one of China's wealthiest self-made businesswomen, with no comparable public collapse.
  3. Diane Hendricks: Hendricks has likewise kept her fortune through ABC Supply's continued growth.
  4. Elizabeth Holmes: Holmes is the one whose billionaire status was short-lived. After Theranos's blood-testing technology was exposed as not working, her paper fortune was wiped out and she was later convicted of fraud.

The rise-and-fall pattern in the question points specifically to Elizabeth Holmes, matching the Theranos clue as well.

So the correct answer is Elizabeth Holmes.

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Question: 4

The Reserve Bank of India recently announced the launch of ‘Digital Rupee — Wholesale Segment’, a form of which of the following?

Show Hint

Whenever the term “Digital Rupee” appears in current affairs, it refers to India’s CBDC initiative by the RBI.
Updated On: Jul 10, 2026
  • Digi Suvidha
  • Virtual Wallet
  • Central Bank Digital Currency
  • Cyber Rupee
Show Solution

The Correct Option is C

Approach Solution - 1

A simple way to work through this is to ask who issues the Digital Rupee and compare that against what each option actually means.

  1. Digi Suvidha and Cyber Rupee: Neither of these is a real classification used for digital money anywhere in RBI or international literature, so both can be set aside immediately.
  2. Virtual Wallet: A wallet is just a storage and payment interface, usually run by a bank or private company, and does not by itself describe who creates the underlying money.
  3. Central Bank Digital Currency: Because the Digital Rupee is created and issued directly by the RBI rather than by a commercial bank or private firm, it falls under this specific global category of money.

Since the RBI itself issues the Digital Rupee, the correct classification is Central Bank Digital Currency.

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Approach Solution -2

Another way to confirm the answer is to compare India's Digital Rupee with similar projects other countries have launched, since most central banks use the same term for this kind of digital money.

  1. Digi Suvidha: No country uses this as a formal term for its central bank's digital currency project.
  2. Virtual Wallet: Countries distinguish clearly between a wallet, the app or account used to hold money, and the currency itself, which is a separate concept from what the question is asking about.
  3. Central Bank Digital Currency: Nations such as China with its digital yuan and the Bahamas with its Sand Dollar all describe their central bank-issued digital money using this same umbrella term, and the RBI's Digital Rupee fits the same definition.
  4. Cyber Rupee: This is simply not a term used in any RBI publication describing the digital rupee project.

Placing the Digital Rupee alongside other countries' central bank digital money confirms it belongs to the Central Bank Digital Currency category.

So the correct answer is Central Bank Digital Currency.

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Question: 5

Which of the following technologies does cryptocurrency rely on?

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Think of cryptocurrency as “crypto” (cryptography) + “currency on a chain” (blockchain). These two technologies always go hand in hand.
Updated On: Jul 10, 2026
  • Cryptography
  • Blockchain
  • Spectrography
  • Both (A) and (B)
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The Correct Option is D

Approach Solution - 1

Think about what would break if you removed just one of these technologies from a cryptocurrency system.

  1. Remove cryptography: Without encryption and digital signatures, anyone could forge transactions or steal from a wallet, since there would be no way to prove ownership or authorise a transfer securely.
  2. Remove blockchain: Without a shared distributed ledger, there would be no reliable, tamper-proof record of transactions, and the system could not prevent the same coin from being spent twice.
  3. Spectrography: Removing or adding this makes no difference at all, since it plays no role in how digital currency works.

Because taking away either cryptography or blockchain breaks the system, cryptocurrency needs both together, not just one of them.

So the answer is Both (A) and (B).

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Approach Solution -2

A third way to look at this is to match each technology to the specific job it performs inside a cryptocurrency network.

  1. Cryptography: Handles the security side, turning a private key into a public address, signing transactions so only the rightful owner can spend funds, and hashing data so records cannot be secretly altered.
  2. Blockchain: Handles the record-keeping side, chaining blocks of verified transactions together across thousands of computers so no single party can rewrite history.
  3. Spectrography: Belongs to an entirely different field, used for identifying chemical composition through light spectra, with no role in finance or computing security.
  4. Both (A) and (B): Since security and record-keeping are two separate, equally essential jobs, both cryptography and blockchain must be present together for a cryptocurrency to work.

Splitting the system into its security function and its record-keeping function shows both technologies are required, not either one in isolation.

So the correct answer is Both (A) and (B).

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Question: 6

What is the name of the Government of India-owned corporation that mints coins used as legal tender in India?

Show Hint

SPMCIL = Coins + Currency + Security documents. If a question mentions minting coins in India, the answer is almost always SPMCIL.
Updated On: Jul 10, 2026
  • National Institute of Financial Management
  • Security Printing and Minting Corporation of India Ltd.
  • India Infrastructure Finance Company Ltd.
  • National Bank of Agricultural and Rural Development
Show Solution

The Correct Option is B

Approach Solution - 1

Since three of the four options are finance or lending institutions, it helps to separate producing money from managing or lending money.

  1. National Institute of Financial Management: Trains government officers in finance, does not produce currency.
  2. India Infrastructure Finance Company Ltd.: Lends money for infrastructure, does not produce currency.
  3. National Bank of Agricultural and Rural Development: Refinances rural credit, does not produce currency.
  4. Security Printing and Minting Corporation of India Ltd.: Actually operates the mints and presses that physically manufacture coins and print currency notes, the only one of the four that produces money rather than managing or lending it.

Since only SPMCIL physically produces coins, that is the correct answer.

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Approach Solution -2

Another way to confirm this is to think about where India's coins physically come from, the actual mint locations, and match that against each organisation.

  1. National Institute of Financial Management: Based in Faridabad as a training campus, with no mint on its premises.
  2. India Infrastructure Finance Company Ltd.: A financing company with offices, not mints, and no manufacturing role.
  3. National Bank of Agricultural and Rural Development: Operates through regional offices for credit refinancing, again with no mints.
  4. Security Printing and Minting Corporation of India Ltd.: Runs the actual government mints, including those in Mumbai, Kolkata, Hyderabad, and Noida, which is where India's coins are physically struck.

Tracing the coins back to their physical source, the government mints, leads directly to the Security Printing and Minting Corporation of India Ltd.

So the correct answer is Security Printing and Minting Corporation of India Ltd.

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Question: 7

Who was the founder and former chairman of Satyam Computer Services Ltd., and was sentenced to prison and fined for a corporate governance scam?

Show Hint

Corporate governance scam → Satyam → B. Ramalinga Raju. Linking major scandals with their key figures helps retain such facts easily.
Updated On: Jul 10, 2026
  • Harshad Mehta
  • Ketan Parekh
  • B. Ramalinga Raju
  • Nirav Modi
Show Solution

The Correct Option is C

Approach Solution - 1

A quick way to answer is to separate stock-market scams from corporate accounting scams, since the question specifically describes the latter.

  1. Harshad Mehta: His scam involved manipulating the stock market and misusing bank funds, a market-level fraud, not a company's own books.
  2. Ketan Parekh: His fraud also centred on rigging share prices of select stocks, again a market manipulation case rather than falsifying a company's accounts.
  3. Nirav Modi: His fraud involved fraudulent bank guarantees used to secure loans, a banking fraud rather than a listed company inflating its own financial statements.
  4. B. Ramalinga Raju: Raju's fraud was specifically about falsifying Satyam's own balance sheet and profit figures for years, which is exactly the corporate governance scam the question describes.

Since the question is about a company falsifying its own accounts rather than market manipulation or banking fraud, the answer is B. Ramalinga Raju.

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Approach Solution -2

Another angle is to recall roughly when each of these frauds became public, since they happened in different decades and the Satyam case is specifically a 2009 event.

  1. Harshad Mehta: His scam broke in 1992, nearly two decades before the Satyam case.
  2. Ketan Parekh: His manipulation came to light in 2001, also well before the Satyam scandal.
  3. Nirav Modi: His fraud surfaced in 2018, years after the Satyam case, and involved a bank rather than a company confessing to its own shareholders.
  4. B. Ramalinga Raju: Raju confessed in January 2009 that he had been inflating Satyam's accounts for years, which matches both the timeline and the founder-and-chairman description in the question.

Placing each scandal on a timeline and checking the specific company involved confirms B. Ramalinga Raju as the person described.

So the correct answer is B. Ramalinga Raju.

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