S1 Like many of its tropical counterparts India was a colony of Britain which ruled out any move to ...........

English Language (Defence) Parajumbles

S1 : Like many of its tropical counterparts, India was a colony of Britain, which ruled out any move to adjust the exchange rate.

S6 : Banks were left with unrecove rable assets.

P Indebted business failed.

Q With devaluation made politically impossible, fall in export demand led to sustained and deep defla tion.

R Indebted households liquidated a variety of assets to repay loans when they could.

S Real interest rates rose.

The correct sequence should be

This questions was previously asked in

2023 CDS -1 English

RSPQ

QSRP

SQPR

PSRQ

- S1 sets the context of India being a British colony, unable to adjust its exchange rate, leading to economic implications.

- Q logically follows, stating that without the ability to devalue, export demand fell, bringing sustained deflation.

- S follows Q by mentioning the rise in real interest rates, a consequence of deflation.

- R comes next, describing how households dealt with the economic pressure by liquidating assets.

- P follows, explaining that businesses couldn't cope with the pressure and failed.

- S6 concludes, highlighting the aftermath of this economic stress, with banks stuck with uncollectible assets.

The correct sequence is: QSRP

Submit Error