Multiple choice

Directions: Answer the given question based on the following passage:

Large investments are flowing into real estate. The average risk-averse wage earners prefer to make investment in residential property as a means of security steeped in cultural values. The demographic change and rising incomes as a result of economic growth has further added to the pressure on real estate prices which in turn is pulling down financial savings. On the other hand, the easy loans available from the banking system for purchase of residential property have led to conversion of financial savings into physical savings. With housing falling in shortage category, it is inevitable for the physical savings to increase in the coming years.

What is the central idea of the passage?

  1. To examine the reasons for growing investment in real estate

  2. To demonstrate the ill-effects of investment in real estate on the economy

  3. To find an answer to the housing falling in shortage category

  4. To examine the factors responsible for pulling down financial savings

  5. To check the ominous rise in physical savings
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The passage makes it clear that investments are on the increase in the real estate. It proceeds to examine the reasons for the same, and that is the central idea contained in the passage.

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