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Directions: Fill in the blanks with appropriate words.
Prior to 1991, India’s economy and financial system were heavily regulated and ____(1)___ by the public sector. A complicated regulatory regime required firms to obtain licenses for most economic activities, and many industries were ____(2)____ for the public sector, including much of the financial system. Bank nationalizations in 1969 and 1980 increased the public sector share of deposits 5 to over 80 per cent, and further branch licensing was rigidly controlled. Primarily focused on financing government ____(3)____ and serving government priority sectors such as agriculture, India’s public banks lacked proper lending ____(4)____ and exhibited a high number of non-performing loans. Following a balance of payments crisis in 1991, however, a number of structural ___(5)___ were implemented that greatly deregulated many economic activities, and in November 1991, a broad financial reform agenda was established in India by the Committee on the Financial System (CFS).
Q. What should come in the place of blank (4)?
  • a)
    Incentives
  • b)
    Deterrent
  • c)
    Disincentive
  • d)
    Warning
  • e)
    Prohibition
Correct answer is option 'A'. Can you explain this answer?
Most Upvoted Answer
Directions: Fill in the blanks with appropriate words.Prior to 1991, ...
Answer:

The blank (4) requires an appropriate word that describes the condition of lending in India's public banks prior to 1991. Let's analyze the given information to identify the correct option:

• Before 1991, India's financial system was heavily regulated and controlled by the public sector.
• A complicated regulatory regime required firms to obtain licenses for most economic activities.
• Many industries were reserved for the public sector, including much of the financial system.
• Bank nationalizations in 1969 and 1980 increased the public sector share of deposits to over 80%.
• India's public banks lacked proper lending incentives and exhibited a high number of non-performing loans.

Based on the above information, we can conclude that the public banks lacked proper lending incentives, which means they did not have enough reasons to encourage lending activities. Therefore, the correct option for the blank (4) is (a) Incentives.

Explanation:

The given information suggests that India's public banks before 1991 were primarily focused on financing government needs and serving government priority sectors such as agriculture. They lacked proper lending incentives, which means they did not have enough reasons to encourage lending activities to the private sector. As a result, the public banks exhibited a high number of non-performing loans, which means the borrowers were not able to repay the loans. Therefore, the correct option for blank (4) is (a) Incentives, which means providing reasons or rewards for encouraging lending activities to the private sector. By offering incentives, the public banks could have attracted more borrowers, reduced the number of non-performing loans, and improved their lending portfolio.
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Community Answer
Directions: Fill in the blanks with appropriate words.Prior to 1991, ...
The passage is about 'Indian economy before 1991'.
Let us refer to this line from the passage, "India’s public banks lacked proper lending ____(4)____ and exhibited a high number of non-performing loans".
From the above sentence, we get to know that India's public banks carelessly gave away money, and now they have a high number of non-performing loans(Borrower not paying the installments or loan).
In option (A), 'Incentives' means a payment or concession to stimulate greater output or investment.
So, 'Incentives' is the correct word for blank (4).
Hence, the correct option is (A).
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Direction: Fill in the blanks with appropriate words.Prior to 1991, India’s economy and financial system were heavily regulated and ____(1)___ by the public sector. A complicated regulatory regime required firms to obtain licenses for most economic activities, and many industries were ____(2)____ for the public sector, including much of the financial system. Bank nationalizations in 1969 and 1980 increased the public sector share of deposits 5 to over 80 per cent, and further branch licensing was rigidly controlled. Primarily focused on financing government ____(3)____ and serving government priority sectors such as agriculture, India’s public banks lacked proper lending ____(4)____ and exhibited a high number of non-performing loans. Following a balance of payments crisis in 1991, however, a number of structural ___(5)___ were implemented that greatly deregulated many economic ____(6)____, and in November 1991, a broad financial reform agenda was established in India by the Committee on the Financial System (CFS). The CFS was appointed by the Government of India to examine the ____(7)____ financial system and make recommendations for improving its efficiency so as to more effectively meet the credit needs of ____(8)____. One of the committee’s recommendations to meet this goal was to introduce greater competition into the banking system by ____(9)____ more foreign banks to enter India. It was argued that the entry of additional foreign banks would improve the competitive efficiency of the Indian banking system and induce an ____(10)____ of banking technology.What should come in the place of blank (4)?

Directions: Fill in the blanks with appropriate words.Prior to 1991, India’s economy and financial system were heavily regulated and ____(1)___ by the public sector. A complicated regulatory regime required firms to obtain licenses for most economic activities, and many industries were ____(2)____ for the public sector, including much of the financial system. Bank nationalizations in 1969 and 1980 increased the public sector share of deposits 5 to over 80 per cent, and further branch licensing was rigidly controlled. Primarily focused on financing government ____(3)____ and serving government priority sectors such as agriculture, India’s public banks lacked proper lending ____(4)____ and exhibited a high number of non-performing loans. Following a balance of payments crisis in 1991, however, a number of structural ___(5)___ were implemented that greatly deregulated many economic activities, and in November 1991, a broad financial reform agenda was established in India by the Committee on the Financial System (CFS).Q. What should come in the place of blank (4)? a)Incentivesb)Deterrentc)Disincentived)Warninge)ProhibitionCorrect answer is option 'A'. Can you explain this answer?
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Directions: Fill in the blanks with appropriate words.Prior to 1991, India’s economy and financial system were heavily regulated and ____(1)___ by the public sector. A complicated regulatory regime required firms to obtain licenses for most economic activities, and many industries were ____(2)____ for the public sector, including much of the financial system. Bank nationalizations in 1969 and 1980 increased the public sector share of deposits 5 to over 80 per cent, and further branch licensing was rigidly controlled. Primarily focused on financing government ____(3)____ and serving government priority sectors such as agriculture, India’s public banks lacked proper lending ____(4)____ and exhibited a high number of non-performing loans. Following a balance of payments crisis in 1991, however, a number of structural ___(5)___ were implemented that greatly deregulated many economic activities, and in November 1991, a broad financial reform agenda was established in India by the Committee on the Financial System (CFS).Q. What should come in the place of blank (4)? a)Incentivesb)Deterrentc)Disincentived)Warninge)ProhibitionCorrect answer is option 'A'. Can you explain this answer? for Banking Exams 2025 is part of Banking Exams preparation. The Question and answers have been prepared according to the Banking Exams exam syllabus. Information about Directions: Fill in the blanks with appropriate words.Prior to 1991, India’s economy and financial system were heavily regulated and ____(1)___ by the public sector. A complicated regulatory regime required firms to obtain licenses for most economic activities, and many industries were ____(2)____ for the public sector, including much of the financial system. Bank nationalizations in 1969 and 1980 increased the public sector share of deposits 5 to over 80 per cent, and further branch licensing was rigidly controlled. Primarily focused on financing government ____(3)____ and serving government priority sectors such as agriculture, India’s public banks lacked proper lending ____(4)____ and exhibited a high number of non-performing loans. Following a balance of payments crisis in 1991, however, a number of structural ___(5)___ were implemented that greatly deregulated many economic activities, and in November 1991, a broad financial reform agenda was established in India by the Committee on the Financial System (CFS).Q. What should come in the place of blank (4)? a)Incentivesb)Deterrentc)Disincentived)Warninge)ProhibitionCorrect answer is option 'A'. Can you explain this answer? covers all topics & solutions for Banking Exams 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Directions: Fill in the blanks with appropriate words.Prior to 1991, India’s economy and financial system were heavily regulated and ____(1)___ by the public sector. A complicated regulatory regime required firms to obtain licenses for most economic activities, and many industries were ____(2)____ for the public sector, including much of the financial system. Bank nationalizations in 1969 and 1980 increased the public sector share of deposits 5 to over 80 per cent, and further branch licensing was rigidly controlled. Primarily focused on financing government ____(3)____ and serving government priority sectors such as agriculture, India’s public banks lacked proper lending ____(4)____ and exhibited a high number of non-performing loans. Following a balance of payments crisis in 1991, however, a number of structural ___(5)___ were implemented that greatly deregulated many economic activities, and in November 1991, a broad financial reform agenda was established in India by the Committee on the Financial System (CFS).Q. What should come in the place of blank (4)? a)Incentivesb)Deterrentc)Disincentived)Warninge)ProhibitionCorrect answer is option 'A'. Can you explain this answer?.
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Bank nationalizations in 1969 and 1980 increased the public sector share of deposits 5 to over 80 per cent, and further branch licensing was rigidly controlled. Primarily focused on financing government ____(3)____ and serving government priority sectors such as agriculture, India’s public banks lacked proper lending ____(4)____ and exhibited a high number of non-performing loans. Following a balance of payments crisis in 1991, however, a number of structural ___(5)___ were implemented that greatly deregulated many economic activities, and in November 1991, a broad financial reform agenda was established in India by the Committee on the Financial System (CFS).Q. What should come in the place of blank (4)? a)Incentivesb)Deterrentc)Disincentived)Warninge)ProhibitionCorrect answer is option 'A'. 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Bank nationalizations in 1969 and 1980 increased the public sector share of deposits 5 to over 80 per cent, and further branch licensing was rigidly controlled. Primarily focused on financing government ____(3)____ and serving government priority sectors such as agriculture, India’s public banks lacked proper lending ____(4)____ and exhibited a high number of non-performing loans. Following a balance of payments crisis in 1991, however, a number of structural ___(5)___ were implemented that greatly deregulated many economic activities, and in November 1991, a broad financial reform agenda was established in India by the Committee on the Financial System (CFS).Q. What should come in the place of blank (4)? a)Incentivesb)Deterrentc)Disincentived)Warninge)ProhibitionCorrect answer is option 'A'. 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