Fill in the blank: investors were wary of the _______ regulatory environment

Question

Foreign investors were wary of entering the market, citing the _______ regulatory environment where policies could change without notice or reason. A). stringent B). capricious C). transparent D). equitable

Edvaya · Accepted Answer

The correct answer is capricious. Capricious means given to sudden and unaccountable changes of mood or behaviour — unpredictable, erratic, and governed by whim rather than reason or consistency. Why "capricious" fits: Policies that change "without notice or reason" perfectly describe a capricious environment — arbitrary and inconsistent. Why the other options are wrong: • Stringent — strict and demanding; implies rigour, not unpredictability. • Transparent — open and clear; implies the opposite of arbitrary change. • Equitable — fair and impartial; suggests consistency and fairness. Example in use: "Her capricious management style made it impossible for employees to plan or set expectations." Synonyms: Unpredictable, erratic, mercurial, fickle, whimsical.

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