Choose the best way of
writing the sentence....
A. Any action of government to reduce the systemic risk inherent in
financial markets will also reduce the risks that private operators perceive
and thereby encourage excessive hedging.
B. Any action by government to reduce the systemic risk inherent in
financial markets will also reduce the risks that private operators perceive
and thereby encourage excessive gambling....
C. Any action by government to reduce the systemic risk inherent in
financial markets will also reduce the risks that private operators perceive
and thereby encourages excessive gambling....
D. Any action of government to reduce the systemic risk inherent in
financial markets will also reduce the risks that private operators perceive
and thereby encourages excessive gambling....
In the second part of the sentence, which is in simple future
tense, the grammatically correct form is "thereby encourage" and not
"thereby encourages". So, option b) is the correct answer....
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