Arrange the following sentences in logical order to form a coherent paragraph.…
2025
Arrange the following sentences in logical order to form a coherent paragraph.
P. Exchange control does not altogether prohibit Indian banks from keeping open positions during the course of a day.
1. Indeed, unless they are willing to take open positions, they will cease to be market-makers.
2. For market-makers offering two-way quotes in the international markets, open positions are far more common.
3. Thus, depending on the policy of a bank, dealers may be allowed to take intra-day positions in order to make profit.
4. For instance, a dealer expecting the dollar to weaken during the day might deliberately create, through customer transactions and transaction in the inter-bank market, an oversold position in the hope of squaring it later during a day at a profit, should his expectation about the dollar weakening materialise.
Q. Large overbought or oversold positions are often deliberately built up in the hope of profiting from price movements.
Answer: D. 3421 — Sentence-rearrangement (para-jumble) questions are solved by scanning for transitional/connector words — ‘thus’, ‘for instance’, ‘indeed’, ‘however’ — that…
- A.
4312
- B.
3241
- C.
1342
- D.
3421
Attempted by 2 students.
Show answer & explanation
Correct answer: D
Sentence-rearrangement (para-jumble) questions are solved by scanning for transitional/connector words — ‘thus’, ‘for instance’, ‘indeed’, ‘however’ — that reveal how one sentence logically continues another, then building the sequence outward from a fixed anchor sentence while keeping every pronoun or referent matched to its antecedent.
Sentence P states that Indian banks are not fully barred from holding open positions during the day.
Sentence 3 opens with ‘Thus’, drawing the direct consequence of P — that dealers may be permitted to take intra-day positions to profit — so 3 follows P.
Sentence 4 opens with ‘For instance’, giving a concrete example (a dealer betting the dollar will weaken) of the profit-seeking position just described in 3 — so 4 follows 3.
Sentence 2 widens the point to market-makers in general, for whom open positions are far more common — a related but separate claim that sets up 1.
Sentence 1 opens with ‘Indeed’, reinforcing the claim in 2 by explaining that market-makers must take open positions or stop being market-makers — so 1 follows 2.
Sentence Q then closes the paragraph by generalising that overbought or oversold positions are often deliberately built up for profit, which follows naturally from 1.
Why the other sequences fail:
A sequence that places 4 immediately after P fails because 4’s ‘For instance’ illustrates the point made in 3 — the example cannot precede the claim it is illustrating.
A sequence that separates 3 and 4 with 2 in between fails because the ‘Thus’–‘For instance’ explanation-example pair in 3 and 4 must stay adjacent.
A sequence that places 1 immediately after P fails because 1’s ‘Indeed’ reinforces the market-maker claim made in 2 — it cannot appear before that claim is introduced.
This chain of connectors fixes the sequence as P-3-4-2-1-Q, i.e. the middle order 3-4-2-1, matching ‘3421’.