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Question

The Minister said that the state was facing/ an acute financial crunch and feared that/the government might be compelled to take/loans to pay the salaries of its employees.

A
The Minister said that the State was facing
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B
an acute financial crunch and feared that
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C
the government might be compelled to take
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D
loans to pay the salaries of its employees
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E
No error
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Solution

The correct option is D loans to pay the salaries of its employees
Using 'loans' is improper. When government seeks loan then it generally owes to World bank or some reputed financial institutions as bailout which is singular. So, "loans' should be replaced by 'loan'.

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