In the following passage, there are blanks each of which has been numbered.…
2026
In the following passage, there are blanks each of which has been numbered. These numbers correspond to the question numbers; against each question, five words have been suggested, one of which fills the blanks appropriately.
Banks have a long history and have _____(1)______economies and politics for centuries. The development of central banks, responsible for the monetary policy of their country and with supervisory powers over banks, _____(2)______ that financial institutions do not behave recklessly or fraudulently. In most countries, the central bank is state-owned and has a minimal degree of_____(3)______ to allow for the possibility of government intervention in monetary policy. While commercial banks serve individuals and businesses,_____(4)______ the flow of money and thus supporting economic transactions, the central bank's function is to maintain economic_____(5)______ by storing and regulating the flow of money, much as various organs in the human body regulate the production and flow of blood, including the production and flow of red and white blood cells, to support the health of the body as a whole.
Find the appropriate word in case 5.
- A.
versatility
- B.
reactivity
- C.
stability
- D.
mobility
Attempted by 226 students.
Show answer & explanation
Correct answer: C
Answer: stability
versatility — ability to adapt to many different functions. Not suitable because the sentence is about what the central bank preserves, not adaptability.
reactivity — tendency to respond quickly to changes. Not suitable because the central bank's role in the passage is to prevent or manage sudden changes, not simply to react.
stability — resistance to sudden change or deterioration. This fits the context: the central bank maintains steady economic conditions by regulating the flow of money and preventing abrupt disruptions.
mobility — ability to move freely. Not appropriate for describing what a central bank maintains for the economy.
Why 'stability' is correct: The passage compares the central bank to body organs that regulate blood flow to keep the body healthy. In the same way, the central bank stores and regulates money to maintain steady economic conditions—controlling inflation, smoothing out shocks, and preventing sudden financial disruptions. 'Stability' precisely captures this idea of preventing abrupt change and preserving predictable economic conditions.