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The Fed knows that a certain level of financial stability

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GMAT Club Legend
GMAT Club Legend
User avatar
Joined: 07 Jun 2014
Posts: 4749
GRE 1: Q167 V156
WE: Business Development (Energy and Utilities)
Followers: 93

Kudos [?]: 1650 [0], given: 396

CAT Tests
The Fed knows that a certain level of financial stability [#permalink] New post 03 Oct 2017, 06:20
Expert's post
00:00

Question Stats:

88% (00:41) correct 11% (01:15) wrong based on 9 sessions

The Fed knows that a certain level of financial stability can be attained by lowering interest rates, yet if it overuses this power, it risks losing its most reliable means of _________ a crisis.
A. interring
B. exacerbating
C. annihilating
D. palliating
E. compounding
F. assuaging

[Reveal] Spoiler: OA
Palliating, assuaging

Practice Questions
Question: 96
Page: 116
[Reveal] Spoiler: OA

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Sandy
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GMAT Club Legend
GMAT Club Legend
User avatar
Joined: 07 Jun 2014
Posts: 4749
GRE 1: Q167 V156
WE: Business Development (Energy and Utilities)
Followers: 93

Kudos [?]: 1650 [0], given: 396

CAT Tests
Re: The Fed knows that a certain level of financial stability [#permalink] New post 14 Oct 2017, 15:40
Expert's post
Explanation

The first half of the sentence explains that lowering interest rates can create financial stability, so this would allow the Fed to make a crisis “better.” Exacerbating and compounding are the opposite of what you want, and annihilating goes too far. Only palliating and assuaging correctly fit the meaning here.

Hence options palliating, assuaging are best fit!
_________________

Sandy
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Re: The Fed knows that a certain level of financial stability   [#permalink] 14 Oct 2017, 15:40
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The Fed knows that a certain level of financial stability

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