Question
Solution
Connectors: A and F A: The primary issue with the transfer of surplus funds is the damage F: that it does to the credibility of the RBI as an independent central bank. Hence, these two are matched. Connectors: B and D B: The transfer of surplus reserves to the government D: is in effect a forced injection of extra liquidity into the economy. So, these two are also matched with each other meaningfully. C and E C: The fresh funds will also help the government to spend more on any fiscal stimulus plan E: that it may decide to implement in order to tackle the slowdown in the economy. No other pair except option 2 shares this relationship
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