TRADERS
are not usually a cheery lot. But they seemed more than pleased last November
when Donald Trump stunned pollsters to ___(1)___have won the
presidency. Although most of his policy proposals were ____(2)___haze at the
time, he did express a few consistently that cheered markets: they liked his
plans to increase government spending, especially on infrastructure,___(3)___ while cutting tax
and regulation. Optimists were creative with their praise of Mr Trump’s plans:
some described them as Keynesian; others thought them Reaganesque. In what came
to be known as the “Trump trade”, the financial markets believed that Mr
Trump’s policies ____(4)____would
have boost corporate earnings. They believed that
fiscal stimulus would require the Federal Reserve to push up interest rates to
stop the economy from overheating and control inflation. The prospect of higher
growth and real bond yields, at least for a time, caused the dollar to ___(5)___increase. All of this
though, hinged on the belief that Mr Trump, a political tyro who had declared
war on the establishment, could navigate the byzantine politics of Washington,
DC. But as a _____(6)____lot of scandals
emerged from the White House, traders have begun to doubt the Republicans’
ability to pass legislation. On May 9th the president ______(7)______suddenly fired James
Comey, then head of the FBI, deepening such concerns. Many wonder whether
anything can be passed at all.Betting markets _______(8)______reckon that Mr
Trump’s chances of passing a corporate-tax cut bill this year fell from 56% to
42% by May 10th. Although stockmarkets remain at an all-time high, other
indicators more sensitive to Mr Trump’s promises have started to reverse
course. Both the dollar and short-term inflation expectations have fallen. The Mexican
peso, which _____(9)_____increased immediately
after Mr Trump’s election because of fears of a potential trade war, has
recovered. Data from Goldman Sachs, a bank, show that when Mr Trump was first
elected, the stocks of certain companies did especially well: those paying high
tax rates, and those working in the construction and engineering industries
outperformed the overall market index. But as the president’s chances of
pushing through his policies have waned, so too have these firms’ fortunes in
the market. In hindsight, traders should have been more ______(10)_____insightful that a
Beltway outsider could radically shake up Washington. Who knew that public
policy could be so complicated?
1. (a) won
(b) have won
(c)
win
(d) have been winning
(e) No Change Required
Ans: (c) win
2. (a) disposed
(b)
muddled
(c) clear
(d) methodical
(e) No change required
Ans: (b) muddled
3. (a) inspite of being
(b) despite
(c) Since
(d) although
(e)
No change required
Ans: (e) No change required
4. (a) should
(b) will
(c) can
(d)
would
(e) No change required
Ans: (d) would
5. (a) soar
(b) stoop
(c) speck
(d) slump
(e) No change required
Ans: (a) soar
6. (a) buildup
(b)
barrage
(c) curtain of fire
(d) conflict
(e) No change required
Ans: (b) barrage
7. (a) unexpectedly
(b) expectedly
(c) intentionally
(d) deliberately
(e) No change required
Ans: (a)
unexpectedly
8.
(a) reckoning
(b) estimate
(c) neglect
(d) Evaluvation
(e)
No change required
Ans: (e) No change required
9. (a) upsurged
(b) sprouted
(c)
plummeted
(d) plunged
(e) No change required
Ans: (c)
plummeted
10. (a) Scoffing
(b) doubt
(c)
sceptical
(d) suspicion
(e) No change required
Ans: (c)
sceptical
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