Fill the blanks with the most appropriate combination of options.
Further, to augment bond market liquidity, corporates need to be encouraged to ______________ exiting bonds under the same International Securities Identification Number, to duly shore up floating ___________.
Explanation
The most appropriate combination is (d) reissue, stocks.
Explanation:
"Reissue"
means to offer a bond back into the market again, essentially creating a new issuance of the same bond. This is the key action needed to increase liquidity.
"Stocks"
is not relevant in this context. The sentence is specifically about bonds, and stocks are a different type of security.
Why other options are incorrect:
• (a) affect, negotiate: "Affect" is not the right verb here. It implies some kind of influence, but the action required is more direct. "Negotiate" might be used in the process of structuring a new issuance, but it doesn't describe the act of reissuing an existing bond.
• (b) abandon, imply: "Abandon" is the opposite of what is needed for liquidity enhancement. It means to give up something, which would decrease liquidity. "Imply" doesn't convey the specific action of reissuing bonds.
• (c) precaution, abstract: "Precaution" is not the right word to describe the action needed to boost liquidity. It suggests taking preventive measures, which is not the focus here. "Abstract" is too vague and doesn't relate to the act of reissuing bonds.
