Directions: In  the following passage there are blanks, each of which has been numbered. against each number, five words are suggested, one of which fits the blank appropriately. find out the appropriate word in each case.

The continuing economic crisis has put central banks and governments the world over into (___41___) waters. For the industrialized West, the question seems to be a choice between economic stimulus and jobs, in the hope of creating a softer landing, or a swift shock at the hands of the free markets, in the hope of getting through the (___42___) more quickly. In emerging markets, the question is how to deal with being the focal point for investors looking to maximise returns. Specifically, for the Federal Reserve in the United States, that means (___43___) hundreds of billions of dollars into the markets  buying Treasury bills to increase liquidity. In Europe the concern is that monetary union may be at risk due to the strains posed by eurozone countries that are (___44___) in (___45___). In Asia, on the other hand, economies are surging, but the prospect of hot money flowing into the region could potentially spell (___46___) due to overheating Fears that the Feds second, round of quantitative easing may lead to a faster pace of (___47___) may be (___48___). US unemployment remains persistently high at around 10 per cent, while Inflation remains astoundingly low at 1 per cent or less, the slowest on record. That’s despite the Feds earlier injection of $ 1.7 trillion into the financial system to avert an economic depression in the wake of the global financial crisis. In contrast to the Feds quantitative easing, the European Central Bank has reduced liquidity in the European banking system by some 350 billion euros during the past five months. This reflects the central banks (___49___) in the improved stability of the banking system and easier (___50___) to capital.

Q1.

41.

(a)tested

(b)unpredictable

(c)under

(d)unquestionable

(e)uncharted

Q2.

42.

(a) downturn

(b) spectrum

(c) options

(d) hope

(e) drama

Q3.

43.

(a) sucking

(b) pumping

(c) forming

(d) blocking

(e) promoting

Q4.

44.

(a) mired

(b) safe

(c) above

(d) unhappy

(e) out

Q5.

45.

(a) market

(b) trouble

(c) debt

(d) surplus

(e) manner

Q6.

46.

(a) positive

(b) negative

(c) trouble

(d) growth

(e) process

Q7.

47.

(a) cost

(b)depreciation

(c)cooperation

(d)inflation

(e)rate

Q8.

48.

(a)challenged

(b)overstated

(c)perfect

(d)predicted

(e) simple

Q9.

49.

(a) weakness

(b) strength

(c)correction

(d) contract

(e) confidence

Q10.

50.

(a)denial

(b)approval

(c)appreciation

(d)access

(e)disposal

ANSWERS :

            1 e       2 a       3 b       4 a       5 c       6 c       7 d       8 b       9 e       10 d