The World Bank president recently warned that the world was in

Question

The World Bank president recently warned that the world was in a precarious position. He called rising food and oil prices a man-made catastrophe that could jeopardize the gains made in overcoming poverty over the past seven years. Asian governments are battling on their own, though it is unlikely that Asia will run into a financial crisis.

Which of the following about Asia, if true helps most to justify the optimism displayed by the writer?

A. Inflation throughout Asia is likely to continue to rise for at least a year.

B. Asia has a track record of booming economic growth.

C. Price inflation affects the middle class most as they have to spend a larger portion of their income on food.

D. Rise in food and fuel prices is an international concern and Asian governments have their own fish to fry.

E. Asian countries have large currency reserves and healthy banks.

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FatalBat · Answer

E is correct... This directly supports the conclusion that asia will not run into financial crisis and opt e said Asia have large currency reserves that helps Asia not to run into crisis

UpHa · Answer

IMO E. 
As it refers to the large currency reserves and healthy banks which could help Asian countries avoiding financial crisis.

sansun · Answer

Answer E: Provides concrete financial strength that would help Asia avoid a crisis

A. rising inflation makes a crisis more likely instaead
B. Past economic growth is helpful but doesn't directly explain resilience to a current crisis.
C. Discusses who is affected by inflation, not why a crisis is unlikely
D. Irrelevant. having "their own fish to fry" does not justify optimism

Bunuel · Answer

OFFICIAL EXPLANATION

The World Bank president warns that rising food and fuel prices could push the poor countries back into poverty. The writer states that Asia will not face an economic catastrophe. We have to find out the reasons why Asias financial markets would continue to be relatively stable.

(A) does not add much value to our argument apart from restating the facts,

(B) is flattering but we must to bear in mind that an overheated economy and soaring inflation make a deadly combination. so our case does not rest here.

(C) reflects the reality when inflation goes out of control, however, the focus of this argument is on financial crisis.

(D) indicates that doing nothing amidst international chaos is the best option for Asia, but it is hardly the wisest, as Asia is equally exposed to the consequences of rising prices.

(E) CORRECT: It describes conditions that enable Asain countries to protect their economy from international shocks. and if true, even a financial crisis.

The Correct answer Choice is (E)

The World Bank president recently warned that the world was in

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­The World Bank president recently warned that the world was in

Prep Toolkit

615 to 715 in 15 Days (Ria's Strategies)

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The World Bank president recently warned that the world was in