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In the following passage there are blanks, each of which has been numbered. These numbers are printed below the passage and against each five words are suggested, one of which fits the blank appropriately. Find out the appropriate words.
The Centre’s push to resolve the problem of bad loans through an ordinance is likely to ____ (1) the banks’ provisioning costs in the short-term as they will need to take significant haircuts or write-offs on their non-per-forming assets, according to Fitch Ratings.
Further losses due to higher provisioning for bad loans could ____ (2)weaker banks closer to a breach of their capital requirements and even force mergers ____ (3) they receive ‘pre-emptive capital injections,’ the agency said in a report.
While Fitch said that the greater powers assigned to the central bank to ____ (4) in banks at ‘an earlier stage when risks build’ is an important step towards a healthy banking system in the future, the move also makes it more likely that the number of state banks will fall in the medium-term.
Further losses at some of the weakest small-to medium-sized state banks could pressure them to shrink, or to ____ (5) exit the system by entering into forced mergers.
Find the appropriate word (1).
  • a)
    encourage
  • b)
    promote
  • c)
    nurture
  • d)
    nudge
  • e)
    None of these
Correct answer is option 'D'. Can you explain this answer?
Most Upvoted Answer
In the following passage there are blanks, each of which has been num...


Explanation:

Context:
The passage discusses the impact of the Centre’s ordinance on resolving bad loans and its potential effects on banks' provisioning costs.

Analysis:
1. Encourage: This word fits the blank appropriately as the push to resolve bad loans through an ordinance is likely to encourage banks to take significant haircuts or write-offs on their non-performing assets in the short term.

2. Nurture: This word does not fit the blank as the context suggests that further losses due to higher provisioning for bad loans could push weaker banks closer to breaching their capital requirements.

3. Nudge: This word does not fit the blank as the passage implies that forced mergers may occur if weaker banks receive 'pre-emptive capital injections' to prevent breaching their capital requirements.

4. Nurtured: This word does not fit the blank as the passage discusses the greater powers assigned to the central bank to intervene in banks at an earlier stage to prevent risks from building up.

5. None of these: This option is not the correct answer as explained above.

Therefore, the correct word to fill in the blank is encourage.
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Community Answer
In the following passage there are blanks, each of which has been num...
The correct word here is ‘nudge’. It means ‘the act of pushing someone or something gently’.
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In the following passage there are blanks, each of which has been numbered. These numbers are printed below the passage and against each five words are suggested, one of which fits the blank appropriately. Find out the appropriate words.The Centre’s push to resolve the problem of bad loans through an ordinance is likely to ____ (1) the banks’ provisioning costs in the short-term as they will need to take significant haircuts or write-offs on their non-per-forming assets, according to Fitch Ratings.Further losses due to higher provisioning for bad loans could ____ (2)weaker banks closer to a breach of their capital requirements and even force mergers ____ (3) they receive ‘pre-emptive capital injections,’ the agency said in a report.While Fitch said that the greater powers assigned to the central bank to ____ (4) in banks at ‘an earlier stage when risks build’ is an important step towards a healthy banking system in the future, the move also makes it more likely that the number of state banks will fall in the medium-term.Further losses at some of the weakest small-to medium-sized state banks could pressure them to shrink, or to ____ (5) exit the system by entering into forced mergers.Find the appropriate word (1).a)encourageb)promotec)nurtured)nudgee)None of theseCorrect answer is option 'D'. Can you explain this answer?
Question Description
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Find out the appropriate words.The Centre’s push to resolve the problem of bad loans through an ordinance is likely to ____ (1) the banks’ provisioning costs in the short-term as they will need to take significant haircuts or write-offs on their non-per-forming assets, according to Fitch Ratings.Further losses due to higher provisioning for bad loans could ____ (2)weaker banks closer to a breach of their capital requirements and even force mergers ____ (3) they receive ‘pre-emptive capital injections,’ the agency said in a report.While Fitch said that the greater powers assigned to the central bank to ____ (4) in banks at ‘an earlier stage when risks build’ is an important step towards a healthy banking system in the future, the move also makes it more likely that the number of state banks will fall in the medium-term.Further losses at some of the weakest small-to medium-sized state banks could pressure them to shrink, or to ____ (5) exit the system by entering into forced mergers.Find the appropriate word (1).a)encourageb)promotec)nurtured)nudgee)None of theseCorrect answer is option 'D'. 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Find out the appropriate words.The Centre’s push to resolve the problem of bad loans through an ordinance is likely to ____ (1) the banks’ provisioning costs in the short-term as they will need to take significant haircuts or write-offs on their non-per-forming assets, according to Fitch Ratings.Further losses due to higher provisioning for bad loans could ____ (2)weaker banks closer to a breach of their capital requirements and even force mergers ____ (3) they receive ‘pre-emptive capital injections,’ the agency said in a report.While Fitch said that the greater powers assigned to the central bank to ____ (4) in banks at ‘an earlier stage when risks build’ is an important step towards a healthy banking system in the future, the move also makes it more likely that the number of state banks will fall in the medium-term.Further losses at some of the weakest small-to medium-sized state banks could pressure them to shrink, or to ____ (5) exit the system by entering into forced mergers.Find the appropriate word (1).a)encourageb)promotec)nurtured)nudgee)None of theseCorrect answer is option 'D'. 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Find out the appropriate words.The Centre’s push to resolve the problem of bad loans through an ordinance is likely to ____ (1) the banks’ provisioning costs in the short-term as they will need to take significant haircuts or write-offs on their non-per-forming assets, according to Fitch Ratings.Further losses due to higher provisioning for bad loans could ____ (2)weaker banks closer to a breach of their capital requirements and even force mergers ____ (3) they receive ‘pre-emptive capital injections,’ the agency said in a report.While Fitch said that the greater powers assigned to the central bank to ____ (4) in banks at ‘an earlier stage when risks build’ is an important step towards a healthy banking system in the future, the move also makes it more likely that the number of state banks will fall in the medium-term.Further losses at some of the weakest small-to medium-sized state banks could pressure them to shrink, or to ____ (5) exit the system by entering into forced mergers.Find the appropriate word (1).a)encourageb)promotec)nurtured)nudgee)None of theseCorrect answer is option 'D'. 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Find out the appropriate words.The Centre’s push to resolve the problem of bad loans through an ordinance is likely to ____ (1) the banks’ provisioning costs in the short-term as they will need to take significant haircuts or write-offs on their non-per-forming assets, according to Fitch Ratings.Further losses due to higher provisioning for bad loans could ____ (2)weaker banks closer to a breach of their capital requirements and even force mergers ____ (3) they receive ‘pre-emptive capital injections,’ the agency said in a report.While Fitch said that the greater powers assigned to the central bank to ____ (4) in banks at ‘an earlier stage when risks build’ is an important step towards a healthy banking system in the future, the move also makes it more likely that the number of state banks will fall in the medium-term.Further losses at some of the weakest small-to medium-sized state banks could pressure them to shrink, or to ____ (5) exit the system by entering into forced mergers.Find the appropriate word (1).a)encourageb)promotec)nurtured)nudgee)None of theseCorrect answer is option 'D'. 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