Practice Test Discussion

Q)

PASSAGE 6 (Questions 6-10)

Directions: In the below given passage, there are blanks each of which has been numbered. Five words are suggested, one of which fits the blank appropriately. Find out the appropriate word in each case.

 (Passage continued from previous page...)

In Asia, on the other hand, economies are surging, but the prospect of hot money flowing-into the region could potentially spell __(6)__ due to overheating. Fears that the Fed's second round of quantitative easing may lead to a faster pace of __(7)__ may be __(8)__ US unemployment remains persistently high at around 110%, while inflation remains astoundingly low at 1% or less, the slowest on record. That's despite the Fed's 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 Fed's quantitative easing, the European Central Bank has reduced liquidity in the European banking system by some 350 billion euros during the past 5 months. This reflects the central bank's __(9)_ in the improved stability of the banking system and easier __(10)__ to capital. 

[RBI (GRADE-I), 2011]

Select the appropriate word for blank 6.


  • Explanation

    'spell' means 'to have something bad as a result of something; e.g. spell disaster, spell trouble, etc.
    Hence, the correct option is 'C'

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