In the following passage, some words have been deleted. Read the passage carefully and select the most appropriate option to fill in each blank. The G20, or Group of Twenty, is an international forum which (1) ______ 19 countries and the European Union (EU). It focuses on significant global economic challenges such as international financial (2) ______, climate change mitigation, and (3) ______development. In 1999, the G20 was formed in (4) ______ to various global economic crises. The G20 (5) ______ itself the principal arena for international economic and financial cooperation during its 2009 meeting.
Select the most appropriate option to fill in blank number 2.
stability
Understanding the G20 and Global Economic Challenges
The passage describes the Group of Twenty (G20) as an international forum comprising 19 countries and the European Union. Its primary focus is addressing significant global economic challenges.
The sentence containing the blank we need to fill (blank 2) specifically mentions some of these challenges:
"It focuses on significant global economic challenges such as international financial (2) ______, climate change mitigation, and (3) ______development."
We need to select the most appropriate word from the given options to describe a challenge related to 'international financial' matters that the G20 would focus on.
Analyzing Options for International Financial Blank
Let's look at the options provided for blank number 2:
- solidity
- literacy
- stability
- permanence
Now, let's consider what each word means and how it fits in the context of "international financial ______ challenges".
| Option | Meaning | Fit in Context? |
|---|---|---|
| Solidity | The quality or state of being firm or strong in structure or form. | Could relate to the strength of financial institutions, but 'stability' is a broader term for the overall system. |
| Literacy | The ability to read and write; knowledge or competence in a particular area. Financial literacy is understanding financial concepts. | This relates to individual or public understanding of finance, not typically a primary 'international financial challenge' addressed by a forum like the G20. |
| Stability | The state of being stable; the property of a body that causes it, when disturbed from a condition of equilibrium or steady motion, to develop forces or moments that restore the original condition. In finance, it means the system is resistant to crises and shocks. | Maintaining stability in the international financial system is a major goal for global economic forums, especially after crises. Financial crises themselves are a form of instability. This fits well. |
| Permanence | The state or quality of lasting or remaining unchanged indefinitely. | Financial systems are dynamic and evolve; permanence isn't the goal. The focus is resilience and stability against changes and shocks, not unchanging nature. |
Identifying the Most Appropriate Word
The passage explicitly mentions that the G20 was formed in response to various global economic crises. Economic crises are often characterized by significant financial instability.
Global forums like the G20 work to prevent and manage financial crises, which involves working towards greater international financial stability. This term directly relates to the resilience and smooth functioning of the global financial system, which is a core concern for major economies.
Considering the context of "global economic challenges" and the G20's role in international financial cooperation, "stability" is the most appropriate word to describe the challenge or goal related to the international financial system.
Conclusion
Based on the analysis of the options and the context of the G20's focus on global economic challenges and its formation in response to crises, the most suitable word to fill blank number 2 is 'stability'. The G20 addresses challenges like maintaining international financial stability.
Revision Table: Key Terms
| Term | Relevance to G20 / Finance |
|---|---|
| G20 | International forum addressing global economic issues. |
| International Financial System | The network of institutions, markets, and agreements governing financial flows across borders. |
| Financial Stability | A state where the financial system is resilient to shocks and disruptions. A key objective for policymakers. |
| Economic Crises | Periods of significant decline in economic activity, often involving financial sector problems. |
Additional Information: G20's Role in Financial Stability
The G20 plays a crucial role in coordinating international efforts to maintain financial stability. Following the 2008 global financial crisis, the G20 was instrumental in implementing reforms to strengthen financial regulation and supervision globally. Discussions within the G20 often involve topics like:
- Cross-border financial regulation.
- Managing capital flows.
- Addressing risks in the banking sector and other financial institutions.
- Strengthening the international monetary system.
These efforts are all aimed at enhancing the stability of the international financial system to prevent future crises and support sustainable global economic growth.
Similar Questions
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Select the most appropriate option to fill in blank number 1.
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Important Questions from Cloze Test
What would come in place of 1
What would come in place of 2
What would come in place of 3
What would come in place of 4
What would come in place of 5
