READING 1: SENDING MONEY HOME
Q1: Paragraph A
Answer: x
Key word(s): “vast distances,” “borrowed money,” “little or no cash,” “send home,” “exceeded $400 billion,” “rate per person is $200.”
Cited Sentence: “Every year millions of migrants travel vast distances using borrowed money for their airfares and taking little or no cash with them... These remittances exceeded $400 billion last year.”
Explanation: Paragraph A introduces the overall context of remittances, including the frequency (millions of migrants) and the typical size (about $200 monthly per person), along with their cumulative value. This aligns with the concept of the frequency and size of remittances, as described in heading x.
Q2: Paragraph B
Answer: vi
Key word(s): “altruism,” “help others,” “exchange for earlier services,” “investment.”
Cited Sentence: “The decision to send money home is often inspired by altruism – an unselfish desire to help others.”
Explanation: Paragraph B explains various reasons migrants send money, including altruism, repayment for previous help, or as investment funds. These align with heading vi, which refers to the motivations behind remittances.
Q3: Paragraph C
Answer: i
Key word(s): “political or financial upheaval,” “do not suddenly dry up,” “increase,” “insurance role.”
Cited Sentence: “At the first sign of trouble, political or financial upheaval, these personal sources of support do not suddenly dry up…they increase in order to ease the hardship.”
Explanation: The paragraph emphasizes the stability of remittances during crises, describing them as countercyclical and reliable compared to other forms of financial aid. This corresponds to heading i.
Q4: Paragraph D
Answer: ix
Key word(s): “cash for food,” “education and healthcare,” “special events.”
Cited Sentence: “It provides cash for food, housing and necessities. It funds education and healthcare and contributes towards the upkeep of the elderly.”
Explanation: Paragraph D details how remittance recipients utilize the money for basic needs, education, emergencies, and events. This matches heading ix, which discusses the usage of remittances.
Q5: Paragraph E
Answer: vii
Key word(s): “hardly ever receive the full value,” “exorbitant transfer fees.”
Cited Sentence: “Unfortunately, recipients hardly ever receive the full value of the money sent back home because of exorbitant transfer fees.”
Explanation: The paragraph focuses on losses due to high transfer fees, mentioning fixed charges and exclusive affiliations. This aligns with heading vii, which refers to losses incurred during transmission.
Q6: Paragraph F
Answer: v
Key word(s): “reduce to no more than one per cent,” “ease regulations,” “restrictive alliances.”
Cited Sentence: “Governments could at least acknowledge that small remittances do not come from organised crime networks and ease regulations accordingly.”
Explanation: The paragraph outlines ways to reduce remittance costs, including easing regulations and promoting competition. These suggestions correspond to heading v, which refers to lowering transmission fees.
Q7: Paragraph H
Answer: iii
Key word(s): “sell bonds,” “used to build infrastructure,” “financial gain.”
Cited Sentence: “Migrants would make a financial gain and see their savings put to work in the development of their country of origin.”
Explanation: The paragraph discusses the concept of migrants investing in their home countries through bonds and donating to charities. This aligns with heading iii, which focuses on targeted investments and contributions.
Questions 8–13
Q8:
Answer: money laundering
Key word(s): “money laundering,” “fear,” “concern.”
Cited Sentence: “There are some countries where there is a low fixed charge…however, these cheaper fees are not applied internationally because of widespread concern over money laundering.”
Explanation: The concern over money laundering is mentioned as a reason why low transfer fees are not universally enforced.
Q9:
Answer: ease regulations
Key word(s): “ease regulations,” “small remittances.”
Cited Sentence: “Governments could at least acknowledge that small remittances do not come from organised crime networks and ease regulations accordingly.”
Explanation: The suggestion to ease regulations refers to simplifying rules around small remittances to reduce costs.
Q10:
Answer: red tape
Key word(s): “elaborate red tape.”
Cited Sentence: “A non-government humanitarian organisation…could set up a non-profit remittance platform…capable of navigating the elaborate red tape.”
Explanation: The phrase “red tape” signifies bureaucratic hurdles, which a non-government entity could handle.
Q11:
Answer: bank deposits
Key word(s): “bank deposits,” “tiny percentage of interest.”
Cited Sentence: “More often than not, that money is in the form of bank deposits earning a tiny percentage of interest, none at all or even a negative rate of interest.”
Explanation: This identifies bank deposits as a common way migrants save money with little to no return.
Q12:
Answer: infrastructure
Key word(s): “build infrastructure.”
Cited Sentence: “Invested money would be used to build infrastructure in that country.”
Explanation: Migrants’ investments in bonds could fund infrastructure development, as stated in the text.
Q13:
Answer: affluent migrants
Key word(s): “affluent migrants,” “donate to worthy causes.”
Cited Sentence: “Advancing the idea one step further, why not make this transmission hub the conduit for affluent migrants to donate to worthy causes in their homeland.”
Explanation: The cited text explicitly mentions affluent migrants donating to charitable causes.