GATE BT 2023 • Q8 MCQ • 2 Marks

General Aptitude

Verbal Aptitude

Subtopic: Sentence Completion

Question Statement:

The World Bank has declared that it does not plan to offer new financing to Sri Lanka, which is battling its worst economic crisis in decades, until the country has an adequate macroeconomic policy framework in place. In a statement, the World Bank said Sr i Lanka needed to adopt structural reforms that focus on economic stabilisation and tackle the root causes of its crisis. The latter has starved it of foreign exchange and led to shortages of food, fuel, and medicines. The bank is repurposing resources under existing loans to help alleviate shortages of essential items such as medicine, cooking gas, fertiliser, meals for children, and cash for vulnerable households. Based only on the above passage, which one of the following statements can be inferred with certainty?

Options:

  • (A) According to the World Bank, the root cause of Sri Lanka's economic crisis is that it does not have enough foreign exchange.
  • (B) The World Bank has stated that it will advise the Sri Lankan government about how to tackle the root causes of its economic crisis.
  • (C) According to the World Bank, Sri Lanka does not yet have an adequate macroeconomic policy framework.
  • (D) The World Bank has stated that it will provide Sri Lanka with additional funds for essentials such as food, fuel, and medicines.

Official Answer Key:

C

Step-by-Step Solution & Explanation

### **Official Solution & Concept Analysis (GATE BT 2023 Q.8)** **1. Governing Concept**: - **Topic**: Reading Comprehension & Textual Inference - Passage excerpt: *"The World Bank has declared that it does not plan to offer new financing to Sri Lanka... until the country has an adequate macroeconomic policy framework in place."* - Deductive inference: Because the World Bank is currently withholding new financing contingent upon the adoption of such a framework, Sri Lanka currently does not yet have an adequate macroeconomic policy framework. **2. Option Analysis**: - **Option (A) is INCORRECT**: The text identifies structural issues as the root cause, and foreign exchange starvation as the consequence. - **Option (B) is INCORRECT**: The passage mentions the Bank requiring reforms, not offering advisory consulting. - **Option (C) is CORRECT**: Directly follows from the Bank withholding funds until an adequate framework is established. - **Option (D) is INCORRECT**: The Bank is repurposing existing loans, not offering additional new funds. **3. Final Answer**: - **Correct Choice**: **C**

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