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Sentence Correction 28 / 50

Choose the option that best corrects the grammatical or logical error in the underlined fragment.

The central bank, despite widespread calls for immediate intervention to stabilize the fluctuating currency, maintained their stance of cautious observation, claiming that its policies were designed for long-term economic stability.

A. (No change)
B. its stance of cautious observation, claiming that its policies were designed for long-term economic stability
C. their stance of cautious observation, claiming that their policies were designed for long-term economic stability
D. its stance of cautious observation, claiming that their policies were designed for long-term economic stability

1. Identification of Error: Pronoun-Antecedent Agreement.
2. Grammatical Rule: A singular subject must be referred to by a singular pronoun. Collective nouns like "bank" are typically treated as singular when acting as a unified entity, thus requiring a singular pronoun.
3. Option Elimination:
A. Incorrect – "their" (plural) incorrectly refers to "The central bank" (singular).
B. Correct – "its" (singular) correctly refers to "The central bank" (singular), and the subsequent "its" for "its policies" maintains consistency with the singular antecedent.
C. Incorrect – Both "their" pronouns are plural, conflicting with the singular antecedent "The central bank."
D. Incorrect – While the first "its" is correct, the second "their" (plural) incorrectly refers to "The central bank's" (singular) policies.

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