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Practice Reading: Fill in The Blanks (Drag & Drop) ID: #31640 Liquidity
Instructions ›
In the text below some words are missing. Drag words from the box below to the appropriate place in the text. To undo an answer choice, drag the word back to the box below the text.
* Drag the correct answer into all target fields
When  people  worry  about  a  glut  of  liquidity,  they  are  thinking  of  the  first  of  these  concepts.  If  money  is  too  abundant  or  too  cheap,  inflationary    may  build  up,  or  bubbles  may  appear  in  financial  markets  —  until  central  banks    policy  or  market  opinion  suddenly  changes.  A  slackening  of    activity  or  a  drop  in  asset  prices  can  leave  households,  businesses  and  financial  institutions  in  trouble  if  their  balance  sheets  are  not  liquid  enough  (the  second  concept)  or  if  they  cannot  find  a  buyer  for  .

kind general tighten ecenomic upright pressure liquidity assets hold

Result:

AI explanationShows the answer. Tap to open.
Correct answer: pressure

Explanation: The word 'pressure' fits grammatically as a noun that describes the force or stress that may arise from an excess of liquidity. Contextually, it aligns with the discussion of inflationary concerns, indicating that too much money can create economic stress.

Meaning: 'Pressure' refers to the stress or force exerted on something, in this case, the economic environment due to excess liquidity.

Wrong options:

  • hold: 'Hold' is a verb that means to grasp or maintain something, which does not fit the context of describing economic conditions.
  • upright: 'Upright' is an adjective that describes a vertical position, which is unrelated to the economic context of liquidity and inflation.
  • ecenomic: 'Ecenomic' appears to be a misspelling of 'economic' and does not fit as it does not describe a type of pressure.
  • kind: 'Kind' is a noun that refers to a type or category, which does not relate to the concept of inflationary forces.
  • general: 'General' is an adjective that describes something common or widespread, which does not specifically address the economic pressure discussed here.
  • liquidity: 'Liquidity' is a noun that refers to the availability of liquid assets, but it does not fit as a description of the resulting condition from excess liquidity.
Correct answer: tighten

Explanation: The verb 'tighten' is appropriate here as it describes the action that central banks take to reduce the availability of money in the economy. This fits grammatically and contextually, as it directly relates to the management of monetary policy in response to excess liquidity.

Meaning: 'Tighten' means to make something less loose or more restricted, in this case, referring to monetary policy becoming more stringent.

Wrong options:

  • hold: 'Hold' is a verb that means to grasp or maintain something, which does not fit the context of monetary policy actions.
  • upright: 'Upright' is an adjective that describes a vertical position, which is irrelevant in the context of central bank actions.
  • ecenomic: 'Ecenomic' is a misspelling and does not convey any relevant action related to monetary policy.
  • kind: 'Kind' is a noun that does not relate to the action of central banks regarding liquidity.
  • general: 'General' is an adjective that does not describe an action taken by central banks in this context.
  • assets: 'Assets' is a noun that refers to valuable items owned, which does not fit as a verb describing the action of tightening policy.
Correct answer: ecenomic

Explanation: The term 'ecenomic' is likely a misspelling of 'economic,' which refers to the activities related to the economy. It fits grammatically as a noun describing the type of activity being discussed, and contextually it relates to the overall economic environment affected by liquidity.

Meaning: 'Ecenomic' (intended as 'economic') pertains to the economy or the management of resources and wealth.

Wrong options:

  • hold: 'Hold' is a verb that does not relate to the concept of economic activity and does not fit grammatically.
  • pressure: 'Pressure' is a noun that describes stress but does not refer to the type of activity in the economy.
  • kind: 'Kind' is a noun that refers to a type or category, which does not fit in the context of economic activity.
  • general: 'General' is an adjective that does not specify the type of activity and is not appropriate here.
  • assets: 'Assets' is a noun that refers to valuable items owned, which does not fit as a descriptor of economic activity.
  • liquidity: 'Liquidity' is a noun that refers to the availability of liquid assets, which does not fit as a descriptor of economic activity.
Correct answer: assets

Explanation: The word 'assets' is a plural noun that refers to valuable items owned by individuals or institutions. It fits grammatically as the object of the sentence and contextually relates to the discussion of financial stability and liquidity.

Meaning: 'Assets' are resources owned by an individual or entity that have economic value.

Wrong options:

  • hold: 'Hold' is a verb that does not fit as it does not refer to a tangible item or resource.
  • upright: 'Upright' is an adjective that describes a position and does not relate to financial resources.
  • ecenomic: 'Ecenomic' is a misspelling and does not refer to any tangible items or resources.
  • kind: 'Kind' is a noun that refers to a type or category, which does not fit in the context of financial resources.
  • general: 'General' is an adjective that does not specify any tangible items and is not appropriate here.
  • liquidity: 'Liquidity' is a noun that refers to the availability of cash or liquid assets, but it does not fit as a noun describing specific resources.

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