RBI Grade B 18 Dec 2011

Which of the phrases a:, b:, c: and d: given below should replace the phrase given in bold in the following sentence to make the sentence grammatically meaningful and correct. If the sentence is correct as it is and no correction is required, mark e: as the answer.

In the following passage, there are blanks, each of which has been numbered. These numbers are printed below the passage and against each, five words are suggested, one of which ts the blank appropriately. Find out the appropriate word in each case.
With fairy lights up in shopping centres and crackers on offer in supermarkets, Britain is already (1) up for Christmas. In this tough economic climate, many retailers are hoping the festive season will be a chance for the public to (2) their financial difficulties. And, for some companies, the millions of Britons now struggling to make ends meet are an early Christmas present. As banks stop lending and (3) eats away at the pay packets of those lucky enough to still be in work, the past year has seen an (4) in high-cost credit lending in the UK. Payday loan companies and hire purchase stores now (5) town centres around Britain, offering astronomical interest rates on loans to those who have few other options to (6) their outgoings. Last year, the payday loan sector was worth £1.7bn, a fivefold increase in the past few years. The pace of expansion is (7) too. Between April and May this year alone, there was a 58 per cent rise in the number of people applying for a payday loan via moneysupermarket.com.