Directions (Q. 1-10): In the following passage there are blanks, each of which has been numbered. These numbers are printed below the passage and against each five words are suggested, one of which fits the blank appropriately. Find out the appropriate words.
Indian’s approach towards treatment of …. (1)…. banks is yet another interesting issue. Rather than closing them down, policymakers in India have shown a preference to … (2)… such banks with healthy public sector banks. It has been … (3).. in certain circles that such an approach may give rise to a moral hazard problem. However, two issue need … (4)…. In this context. First, commercial banks are the most dominant and systemically important segment of the financial system. Second, over 70 per cent of the bank depositors in India are small depositors. Therefore, systemic concerns coupled with the necessity to …. (5)…. The interest of small depositors have been … (6)… in the minds of policymakers while …. (7)… with insolvent banks. This issue had not …. (8)…. Much attention in the context of a predominantly government owned banking system. As the weight of private banks increases further thinking will need to be done on this subject, both in teams of …. (9)…. Of insolvency through advance regulatory supervision and action, and post insolvency measures that …. (10)… moral hazard and eventual fiscal cost