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Q:
A) The offsetting of payment flows between geographical areas, increasing the cost of settlement between them. | B) The offsetting of payment flows between geographical areas, reducing the cost of settlement between them. |
C) The offsetting of payment flows only in urban areas, reducing the cost of settlement between them. | D) The offsetting of payment flows only in rural areas, increasing the cost of settlement between them. |
Answer: B) The offsetting of payment flows between geographical areas, reducing the cost of settlement between them.
Explanation:
Explanation:
The passage is based on economic development of the bank. It says that the economic growth of the bank in terms of the money is based on the cost of settlement. If this cost is reduced amongst the countries then the flow of payment will be maintained or vice versa. It is nowhere mentioned in the passage about rural or urban areas so we will take a general context. Hence option B is the correct option.