Question

\during the 2007 - 2010 financial crisis, the united states furnished billions of dollars to selected countries central banks via mechanisms called swap lines. aditi sahasrabuddhe found that countries policy environments seem to have been ____ swap line decisions: the probability that banks would be granted swap lines was 0.20 in countries open to foreign - capital inflows and 0.03 in countries with policies restricting such inflows. which choice completes the text with the most logical and precise word or phrase? a) predicated on b) decoupled from c) material to d) mediated by

Explanation:

The sentence is discussing the probability of banks being granted swap lines and how it relates to a country's policies. The phrase "predicated on" means based on or dependent on. In the context of the text, it makes sense as it is indicating that the probability is based on certain policies (restricting inflows etc.). "Decoupled from" would mean separated from which doesn't fit the context as the text is showing a relationship. "Material to" means relevant but not as precise as "predicated on" which shows a causal - like relationship. "Mediated by" means influenced through a medium which is not the case here.

Answer:

A. predicated on