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Indian Economy - Understanding the basics of Indian economic system

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    Directions: In the following passage, some of the words have been left out, each of which is indicated by a letter. Find the suitable word from the options given against each letter and fill up the blanks with appropriate words to make the paragraph meaningful.
    Following the Centre’s decision to withdraw high-value banknotes and impose withdrawal ____ (A) ____ on account-holders Banks have thus found themselves in an ____ (B) ____ situation where their liabilities have jumped sharply, while their assets have instead almost ____ (C) ____. This has added to their woes at a time when ____ (D) ____ bad loans have pushed most public sector banks to post record quarterly losses. The demonetisation decision has ____ (E) ____ ended up providing banks with the windfall of low-cost deposits that could potentially serve as the launch pad to a credit-backed demand ____ (F) ____ in the economy. Other banks have also cut lending rates, and lenders are now ____ (G) ____ with each other to innovatively structure credit products, including home loans, in a bid to capitalise on what they hope will be an enduring revival in the appetite for borrowing.


    A

    action

    Incorrect Answer

    curbs

    Correct Answer

    penalty

    Incorrect Answer

    sanction

    Incorrect Answer

    taxes

    Incorrect Answer
    Explanation:

    In the context of the paragraph describing the after-effects of 'Demonitization' on Indian Bank Industry, the word "curbs" which refers to "checks or restraints on something" is the most suitable among the choices given.
    Ex. If you don't cage him now, you lose the ability to curb the animalistic side of him.
    Option B is hence the correct answer.


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