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      Question

      Each sentence has one blank. Choose the most

      appropriate word to make the sentence grammatically and contextually correct.┬а The regulator sought to ______ systemic risks by introducing macro prudential norms aimed at stabilizing the financial sector.┬а
      A nullify Correct Answer Incorrect Answer
      B mitigate Correct Answer Incorrect Answer
      C circumvent Correct Answer Incorrect Answer
      D ameliorate Correct Answer Incorrect Answer
      E exacerbate Correct Answer Incorrect Answer

      Solution

      Regulators introduce macroprudential norms to reduce the severity of systemic risks in the financial system. So, mitigate is the most precise word. Meanings of options:

      1. Nullify тАУ to cancel or make ineffective
      2. Mitigate тАУ to reduce the severity or impact
      3. Circumvent тАУ to avoid or bypass
      4. Ameliorate тАУ to improve
      5. Exacerbate тАУ to make worse

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