Read each sentence carefully to find out whether there is any grammatical or idiomatic error in it. The error, if any, will be in one part of the sentence marked (a), (b), (c) or (d). Choose the option corresponding to that part. If the sentence is correct as it is, choose “No error (e)” as your answer. Ignore punctuation errors, if any. The regulator called for stricter supervision of cooperative banks (a) so that systemic risks could be mitigated (b) and depositor confidence is restored (c) in the long run (d). No error (e)

This question examines tense consistency within a compound clause. When two actions are joined by “and” and describe parallel outcomes of the same condition, both verbs should maintain the same tense or modal structure. The first clause correctly uses “could be mitigated,” which expresses possibility using a modal verb. However, the second clause shifts to the simple present tense “is restored,” creating inconsistency. To maintain parallelism and logical uniformity, the second clause should also use a modal construction such as “could be restored” or “be restored.” Therefore, part (c) contains the error.