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Based only on the above passage, which one of the following statements can be inferred with certainty?

  • A.According to the World Bank, the root cause of Sri Lanka's economic crisis is that it does not have enough foreign exchange.
  • B.The World Bank has stated that it will advise the Sri Lankan government about how to tackle the root causes of its economic crisis.
  • C.According to the World Bank, Sri Lanka does not yet have an adequate macroeconomic policy framework.
  • D.The World Bank has stated that it will provide Sri Lanka with additional funds for essentials such as food, fuel, and medicines.

Answer: C

The statement that can be inferred with certainty is that according to the World Bank, Sri Lanka does not yet have an adequate macroeconomic policy framework.

The passage says the Bank will offer no new financing "until the country has an adequate macroeconomic policy framework in place". A refusal that lasts until the framework exists can only be explained if the framework does not exist now, so the claim follows from the text alone.

A reverses the passage: it is the root causes of the crisis that have starved the country of foreign exchange, so the shortage of foreign exchange is an effect, not the root cause. B goes beyond the text: the Bank says Sri Lanka needs structural reforms, but never says that it will advise the government. D contradicts it: the Bank only repurposes resources under existing loans and declines new financing, so no additional funds are promised.

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