Direction: A statement with one blank is given below. Choose the set of words from the given options which can be used to fill the given blanks. Non-banking financial companies, already reeling under a painful liquidity crisis, _________________________ . I. would have to comply with a higher liquidity coverage ratio. II. would likely put significant pressure on their margins. III. are up against new regulatory norms

Step-by-step solution

Statement I: Non-banking financial companies, already reeling under a painful liquidity crisis, would have to comply with a higher liquidity coverage ratio- This is correct as both the fragments have the same tone and supplement each other. Statement II: Non-banking financial companies, already reeling under a painful liquidity crisis, would likely put significant pressure on its margins- The statement is incorrect as the two fragments are not coherent. Also, the use of ‘its’ does not go with the plural