Directions: In this section, each item consists of six sentences of a passage. The first and the sixth sentences are given in the beginning as S1 and S6. The middle four sentences in each have been jumbled up and labelled as P, Q, R and S. You are required to find the proper sequence of the four sentences and mark your response accordingly on the Answer Sheet.

S1: An economic crisis is a situation in which the economy of a country experiences a sudden downturn brought on by a financial crisis.

S6: Additionally, central banks also have an important role in reducing the probability of a crisis occurring by undertaking pre-emptive measures that among other things reduce systemic risks.

P:  A central bank’s main objective during a crisis is to contain the damage and limit the impact of the crisis on the real economy. 

Q: Economic crises not only affect the level of economic activities but can also cause financial panic, which lowers monetary policy efficiency with more damaging effects on the economy.

R: An economic crisis can take the form of a recession or a depression. 

S: This can be achieved through various means such as enhancing confidence and calming the market, ensuring uninterrupted flow of credit, reducing uncertainty; ensuring that markets for short-term credit function properly, among others.