Read the following passage carefully and answer the questions given below. At the pinnacle of the global financial crisis in 2008 when liquidity crunch hit the Indian credit market, the then finance minister P. Chidambaram constituted a liquidity management committee _______ by the then finance secretary Arun Ramanathan. The decision raised hands as liquidity management is a key function of the RBI. (One of the meetings of that committee was held in the head office of a public sector bank in Bandra-Kurla Complex in Mumbai.) An ‘annoyed and upset’ Duvvuri Subbarao,/(1) the then governor of RBI, /(2) calling up the finance minister to say that /(3) he would not participate /(4) in the meeting./(5) Mr. Subbarao himself penned /(1) leading the Reserve Bank of India through /(2) the incident down in his memoir /(3) five turbulent years./(4) — Who Moved My Interest Rate - /(5) The point is, even in such _______ economic circumstances, Mr. Chidambaram did not take specific policy-related issues to the RBI board. But now times have changed. In the last two board meetings of the central bank, /(1) specific issues such as bank capital, debt restructuring scheme, /(2) liquidity for non-banking finance companies and reviewing prompt corrective action framework, (3) apart from the economic capital framework, was discussed. /(4) A statement issued by RBI after the November 19 board meeting, among other things, said, “The Board, while deciding to retain the CRAR at 9%, agreed to extend the transition period for implementing the last tranche of 0.625% under the Capital Conservation Buffer (CCB), by one year i.e. up to March 31, 2020.”
The RBI board will discuss the issue of liquidity problems of NBFCs in the next board meeting on December 14, apart from governance issues, and corporate borrowers will be an obvious beneficiary if steps are taken to address the issue
Fill the blank in the following sentence with the most appropriate word. At the pinnacle of the global financial crisis in 2008 when liquidity crunch hit the Indian credit market, the then finance minister P. Chidambaram constituted a liquidity management committee _______ by the then finance secretary Arun Ramanathan.
Headed
Understanding the Question and Blank
The question asks us to fill in the blank in a sentence describing the formation of a liquidity management committee during the 2008 global financial crisis. The sentence is: "At the pinnacle of the global financial crisis in 2008 when liquidity crunch hit the Indian credit market, the then finance minister P. Chidambaram constituted a liquidity management committee _______ by the then finance secretary Arun Ramanathan." We need to find the word that best describes the relationship between the committee and the finance secretary, Arun Ramanathan.
Analyzing the Options
Let's look at the given options and see which one fits the context:
- Handed: This word usually means passed something physically or figuratively to someone. A committee isn't typically "handed" by a person in this grammatical structure.
- Followed: This implies coming after someone or something. A committee is not "followed" by the person who is likely in charge of it at its inception.
- Completed: This means finished or brought to an end. The sentence talks about constituting (forming) the committee, not completing it.
- Compelled: This means forced or obliged. A person in charge of a committee doesn't "compel" the committee itself in this way.
- Headed: This means led or was in charge of. This word is commonly used to describe the role of a person leading a group, committee, or organization.
Determining the Most Appropriate Word
The sentence structure suggests that Arun Ramanathan was in a position of leadership or authority over the liquidity management committee. The word "headed" precisely conveys this meaning – that he was the head or leader of the committee. This is a standard way to describe someone leading a committee that has been constituted for a specific purpose.
Considering the options, "Headed" is the only word that accurately describes the finance secretary's role as the leader of the liquidity management committee formed by the finance minister during the liquidity crunch.
Conclusion
Based on the analysis of the sentence structure and the meaning of the options, the most appropriate word to fill the blank is "Headed". It indicates that Arun Ramanathan was leading the liquidity management committee.
Important Questions from Vocab Based Questions
- Select the most appropriate synonym of the given word. PREFUNCTORY
Space of ______, primarily in thought,
do not break the _________ of a thought
This function is used __________the active, wide-awake
and ideas ________ in harmony with your special
