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    Question

    The following statements have two blanks which are to

    be filled with the options given below. Find the combination/s which can most suitably complete the sentence without altering the meaning of the statement. In an environment marked by heightened uncertainty and rapid financial innovation, regulators have underlined the importance of __________ supervisory frameworks that can anticipate risks early and prevent the build-up of systemic __________ across interconnected financial institutions. A. Reactive B. Proactive C. Cosmetic D. Fragility E. Vulnerability
    A B – D Correct Answer Incorrect Answer
    B C – E Correct Answer Incorrect Answer
    C A – E Correct Answer Incorrect Answer
    D C – D Correct Answer Incorrect Answer
    E None of the above Correct Answer Incorrect Answer

    Solution

    Proactive fits risk anticipation, and systemic fragility is the standard policy collocation for economy-wide weakness. Fragile means weak.

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