810. The established order is supported by religion to                 (1) None of the above.
      (1) alleviate the suffering of the poor in the capitalist        (2) It has been promoting the biogas programme.
          system                                                       (3) It has many Gobargas plants.
      (2) help the tortured men to seek redress
                                                                       (4) It has the largest cattle population.
      (3) balance the suffering of the poor with hopes of
          future reward                                              Directions (816–820) : In the following questions,
                                                                read the passage carefully and choose the best answer to
      (4) perpetuate the injustice imposed by the capitalist
                                                                each question out of the four alternatives.
                                                                                                (SSC CAPFs SI, CISF ASI & Delhi
     Directions (811–815) : In the following questions,                                               Police SI Exam, 30.08.2015
read the passage carefully and choose the best answer to                                                         TF No. 4039770)
each question out of the four alternatives.
                                                                     Both borrowers and lenders in the sub-prime mort-
                      (SSC CAPFs SI, CISF ASI & Delhi Police SI gage market are wishing they had listened to the old say-
                             Exam, 30.08.2015 TF No. 4039770)
                                                                ings : neither a borrower nor a lender be. Last year peo-
     Biogas is a mixture of methane, carbon dioxide, hy-        ple with poor credit ratings borrowed $ 605 billion in mort-
drogen and hydrogen sulphide, the major constituent be-         gages, a figure that is about 20% of the home-loan mar-
ing methane. Biogas is produced by anaerobic degrada-           ket. It includes people who cannot afford to meet the mort-
tion of animal wastes (sometimes plant wastes) in the pres-     gage payments on expensive home they have bought, and
ence of water. Anaerobic degradation means break–down           low-income buyers. In some cases, the latter could not even
of organic matter by bacteria in the absence of oxygen.         meet the first payment. Lenders include banks like HSBC,
Biogas is a non-polluting, clean and low cost fuel which is     which may have lost almost $ 7 billion. Both sides can be
very useful for rural areas where a lot of animal waste         blamed. Lenders, after the 2-3 percentage point premium
and agricultural waste are available. India has the largest     they could charge, offered loans, known as ‘liar loans’, with
cattle population in the world (240 million) and has tre-       no down payments and without any income verification of
mendous potential for biogas production. From cattle dung       people with bad credit histories. They believed that rising
alone, we can produce biogas of a magnitude of 22,500           house prices would cover them in the event of default.
mm3 annually. Air-tight digestion/degradation of animal         Borrowers ignored the fact that interest rates would rise
waste is safe as it eliminates health hazards which nor-        after an initial period. One result is that ‘default rates on
mally occur in case of direct use of dung due to direct         these sub-prime mortgages reached 14% last year-a
exposure to faecal pathogens and parasites.                     record. The problems in this market also threaten to
 811. What is Biogas ?                                          spread to the rest of the mortgage market, which would
                                                                reduce the flow of credit available to the shrinking num-
      (1) A mixture of methane, carbon dioxide, hydrogen
                                                                bers of consumers still interested in buying property. So,
           and hydrogen sulphide.
                                                                the housing market will remain weak; borrowers with weak
      (2) Fermentation of alcohols.
                                                                credit histories will find the credit window closed; peo-
      (3) A synthetic gas by catalytic conversion of meth-      ple with adjustable-rate mortgages will have to spend less
           ane.                                                 so they can meet their increased payments; tighter lend-
      (4) The smoke that contains impurities like sulphur.      ing standards and falling home prices will reduce consum-
                                                                er’s ability to tap the equity in their homes. But as long
 812. Why is biogas useful ?
                                                                as the labour market remains strong, which it has done
      (1) It is very easy to use.                               despite job losses in housing-related industries, and as long
      (2) It is non-polluting, clean and low cost fuel.         as real incomes continue to go up, consumers might com-
      (3) It can be easily obtained from plants and ani-        plain, but they are unlikely to go on a buyers’ strike on a
           mals.                                                scale that will make this slowdown become a recession.
                                                                Therefore, we should not be too worried, but, at the same
      (4) It is abundant.
                                                                time, we should be a bit cautious and watch closely how
 813. How is biogas produced ?                                  things develop.
      (1) By anaerobic degradation of animal wastes.             816. Borrowers have been caught out because
      (2) By fertilizers containing bacterial biomass.
                                                                       (1) house prices have risen.
      (3) By burning of waste products.                                (2) they wanted more than they could afford.
      (4) By direct supply of gas from the plants.                     (3) interest rates rose after a while.
 814. During the process of degradation of matter by bac-              (4) they lied when applying for the loan.
      teria, what is necessary ?                                 817. Who is of the opinion that rising house prices would cover
      (1) Both oxygen and water.                                       them in the event of a default ?
      (2) Presence of oxygen and absence of water.                     (1) lenders      (2) borrowers
      (3) Both oxygen and water are not required.                      (3) capitalists (4) both borrowers and lenders
                                                                 818. According to the text, people with adjustable-rate
      (4) The presence of water and absence of oxygen.                 mortgages
 815. Why is India considered as a country that has tre-               (1) will have to economize.
      mendous potential for biogas production ?                        (2) have weak credit histories.