New SIDBI Grade A New Batch Starts on Nov 18

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    Question

    In the following sentences, there are two blanks. Find out the appropriate words for filling up the blanks:

    The bank's decision to _____ interest rates is likely to _____ consumer spending and stimulate economic growth.

    A elevate , diminish Correct Answer Incorrect Answer
    B reduce, restrain Correct Answer Incorrect Answer
    C maintain, curtail Correct Answer Incorrect Answer
    D lower, invigorate Correct Answer Incorrect Answer
    E None of these Correct Answer Incorrect Answer

    Solution

    The most appropriate words are "lower" and "invigorate." Lowering interest rates typically increases (or invigorates) consumer spending, which in turn stimulates economic growth. Other options do not fit the context correctly.

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