Read the following passage and answer the given questions. In recent years,…
2025
Read the following passage and answer the given questions.
In recent years, China’s economy has expanded rapidly, with consumer spending playing a pivotal role. From groceries to luxury items, nearly every purchase now passes through digital payment gateways such as Alipay and WeChat Pay. These platforms have revolutionized the financial landscape, providing convenience and speed. However, beneath this innovation lies a growing concern: the overcharging practices of these payment firms. Merchants across sectors have complained that the transaction fees are often higher than advertised. Small firms, in particular, feel the burden, as they rely heavily on digital payments to stay competitive in a market where cash is steadily declining. Many local businesses, unable to bear the pressure of mounting costs, have folded within months of adopting these systems. This _____________ how dependence on a few gateways can distort fair competition. A recent report highlights that while international credit card companies charge between 1% and 3% per transaction, some Chinese gateways impose hidden charges that push the effective rate even higher. The issue is not just about percentages; merchants also face delays in settlement, mandatory promotional tie-ins, and penalties for using alternative platforms. These tactics create an environment where firms have little choice but to comply. Interestingly, consumers remain largely unaware of the scale of overcharging because the extra costs are often folded into the final prices of goods and services. In a way, the weather of the broader economy—rising inflation, slowing exports, and unpredictable growth—makes these charges even harder to digest. Instead of encouraging financial freedom, these practices contribute to a sense of dependency on a few dominant players. Observers warn that if unchecked, this trend could harm innovation in the long run. The monopolistic grip of payment giants not only squeezes small firms but also discourages new entrants from experimenting with alternative solutions. Unless greater transparency and regulatory oversight are introduced, the promise of a seamless digital economy may end up costing more than it delivers.
In the sentence “Many local businesses, unable to bear the pressure of mounting costs, have folded within months of adopting these systems,” what is the most suitable synonym for the word “folded”?
- A.
Expanded
- B.
Closed
- C.
Shrunk
- D.
Evolved
- E.
Joined
Attempted by 5 students.
Show answer & explanation
Correct answer: B
Concept
A contextual synonym is the word whose meaning best replaces the target word without changing the sentence's intended meaning. The right choice must fit the exact sense the word carries in this passage, not merely some dictionary meaning of the word in isolation.
Application
Target sentence: “Many local businesses, unable to bear the pressure of mounting costs, have folded within months of adopting these systems.” Here “folded” is a business idiom — a firm that “folds” ceases to operate, i.e. it shuts down because it can no longer cover its costs.
The surrounding clues confirm this sense: “unable to bear the pressure of mounting costs” signals failure and exit from the market, not growth or mere change. Substituting each candidate back into the sentence, the word that preserves this ‘went out of business’ meaning is “Closed” — “have closed within months” reads naturally and keeps the intended sense of firms ceasing to operate.
Contrast
Expanded — grew larger; the opposite of a firm forced out by mounting costs, so it contradicts the sentence.
Shrunk — reduced in size while still operating; the firms did not merely get smaller, they ceased to exist, so this is too weak.
Evolved — changed or developed into a new form; nothing here suggests transformation, only failure.
Joined — came together or merged; the passage describes firms ending operations, not partnering.
Result
The synonym that fits the contextual ‘went out of business’ sense is “Closed.”