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      Question

      Each sentence has one blank. Choose the most appropriate word to make the sentence grammatically and contextually correct.  The central bank decided to _______ interest rates to curb inflation, a move that would make home loans more expensive for families like the Sharmas who were planning to buy their first apartment. 

      A abate Correct Answer Incorrect Answer
      B plunge Correct Answer Incorrect Answer
      C hike Correct Answer Incorrect Answer
      D abolish Correct Answer Incorrect Answer
      E stabilize Correct Answer Incorrect Answer

      Solution

      To curb inflation, a central bank generally raises interest rates so that borrowing becomes costlier. Hence, hike fits best.

      1. Abate – to reduce or become less intense
      2. Plunge – to fall sharply
      3. Hike – to increase or raise
      4. Abolish – to formally end or remove something
      5. Stabilize – to make steady or balanced

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