Question

In the following questions, a sentence is given with two blanks in it followed by multiple options. Choose the most appropriate words that fit correctly in the given blanks. If none of the combinations is correct, choose option E as your answer. If central banks continue to interest rates without assessing underlying liquidity constraints, fragile domestic businesses would inevitably critical working capital during peak production cycles. (

Q: Answer-In the following questions, a sentence is given with two blanks in it followed by multiple options....

Context Meaning The sentence describes a cause-and-effect scenario regarding financial policy. Increasing interest rates without checking market conditions creates borrowing difficulties for fragile businesses, causing them to run out of funds. Blank 1 Needs a verb that indicates an action by central banks affecting liquidity. Hike word A fits properly, as raising interest rates makes loans expensive and tightens liquidity. Blank 2 Needs a verb showing the impact on working capital. Exhaust word E fits accurately, meaning businesses will completely use up or drain their available money. Elimination Option A B and D Reducing rates would not cause businesses to forfeit give up capital in a negative sense. Option C C and F Stabilize and maintain mean keeping things unchanged, which does not logically trigger a crisis of capital loss. Option D B and F Reduce and maintain cannot fill two different positions to create a meaningful conditional sentence.