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      Question

      RBI can now …………. banks to

      …………. insolvency …………. with respect to specific borrowers who are in default, and can appoint advisory committees to advise banks on the resolution of stressed assets. Each question below has three blanks, each blank indicating that something has been omitted. Find out which option can be used to fill up the blanks in the sentence in the same sequence to make it meaning complete:
      A tell, indicate, procedures Correct Answer Incorrect Answer
      B direct, indicate, measures Correct Answer Incorrect Answer
      C direct, initiate, proceedings Correct Answer Incorrect Answer
      D enforce, initiate, action Correct Answer Incorrect Answer
      E None of these Correct Answer Incorrect Answer

      Solution

      RBI can now direct banks to initiate insolvency proceedings with respect to specific borrowers who are in default, and can appoint advisory committees to advise banks on the resolution of stressed assets. Direct - guide. Initiate - start off. Proceeding - a series of activities / events.

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