Question
The RBI took a policy decision in 1997 to
……….. and …………… a ratio of internal reserves to assets at 12% to …………… adequate risk capital for its balance sheet. In the following sentences, there are three blanks. Find out the appropriate words for filling up the blanks.Solution
The first word in both options a and d talks about attaining the target of the internal reserve to assets ratio of 12%. However, RBI aims at not only achieving this target but also sustaining it. Maintain in option d conveys this idea perfectly rather than conserving in option a. (conserve mean To save for later use, sometimes by the use of a preservative to protect an environment). This was done by RBI to secure risk capital for its balance sheet. This idea is therefore perfectly expressed by using the words in option d.
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