The correct answer is D.
As said by Anand..
Large sums of money is
singular so
use singular verb produces
Correct idiomatic usage is
expenditure of large sums of money
One more tip ... if you are stuck between 2 sentences, looks for words which do not sound real english, like NO CERTAINITY (
Uncertainity is better form).
Large sums of money is different to money in large sums. The first is singular and the second is plural. Hence "produces" should satisify a singular noun. Below sentence will give u a better picture... try to find, which is a singular and which is plural.
1. Big Box full of Chocolates (singular or plural) similar to, Large sums of Money...
2. Chocolate in big boxes (sigular or plural) similar to Money in large sums...
Let us complete the above sentence...
1. Big box full of choclates is/are what i like to have. IS is correct, right?
2. Choclate in big boxes were/was given to me. Were is correct, is it not?
Hence the sentence C is has this error. I hope I was able to explain the point.
Correct me if I am wrong.
By the way, whats the source of this questions .. ETS?
Regards
_________________
Giving another SHOT