The Finance Secretary said that one of the ________[I] that the Reserve Bank of India’s rate cuts were not being transmitted by the banks was because they didn’t have enough liquidity left to ________[II] lend to the private sector after accommodating government borrowing.

Choose the correct pair of words to fill in the blanks:

| [I] | [II] |
|-----------|--------------|
| (A) Reasons | (D) Impingment |
| (B) Crunches | (E) Distinguish |
| (C) Sanctions | (F) Adequately |

Question

The Finance Secretary said that one of the ________[I] that the Reserve Bank of India’s rate cuts were not being transmitted by the banks was because they didn’t have enough liquidity left to ________[II] lend to the private sector after accommodating government borrowing.

Choose the correct pair of words to fill in the blanks:

| [I]       | [II]         |
|-----------|--------------|
| (A) Reasons | (D) Impingment |
| (B) Crunches | (E) Distinguish |
| (C) Sanctions | (F) Adequately |

Accepted Answer

**Solution:**

1. The first blank requires a word that fits the context of a cause or factor explaining why the RBI’s rate cuts are not passed on by banks. Among the options:
   - "Reasons" fits perfectly as it means causes or explanations.
   - "Crunches" refers to a biting or crushing sound, which is irrelevant here.
   - "Sanctions" means penalties or official approvals, which does not fit the context.

2. The second blank needs an adverb or word that describes how banks lend to the private sector after accommodating government borrowing.
   - "Adequately" means sufficiently or properly, which fits well here.
   - "Impingement" means an effect or infringement, which is a noun and does not fit grammatically.
   - "Distinguish" means to recognize or set apart, which is a verb and does not fit the sentence.

3. Therefore, the correct combination is "Reasons" for the first blank and "Adequately" for the second blank.

**Answer:** (c) A-F

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