In the question below, two statements are given with one blank each, which must be filled in with the same word. Following the statements are five words. Choose the most appropriate word which could fill in both the blanks to make both the statements grammatically and contextually correct.

I. The RBI's decision to ________ interest rates sent a positive signal to the capital markets.

II. The government plans to ________ its investment in renewable energy infrastructure over the next five years.

The correct option is Boost.

Let's analyze the statements contextually and grammatically to understand why "Boost" is the correct fit for both blanks:

Statement I: "The RBI's decision to ________ interest rates sent a positive signal to the capital markets."
In a financial context, actions that send a "positive signal to capital markets" usually involve encouraging growth or stimulating economic activity. "Boost" means to increase, encourage, or improve. If the RBI decides to boost interest rates, it could indicate confidence in the economy. More importantly, let's examine the grammatical structure. The word "to" requires a base form of a verb (infinitive). "Boost" is a verb in its base form. "Reduce" and "Freeze" are also base verbs, but "Boost" fits the positive signal context well when paired with the second sentence.

Statement II: "The government plans to ________ its investment in renewable energy infrastructure over the next five years."
Here, the government plans to take an action regarding "its investment in renewable energy." A plan to increase or support investment fits perfectly. "Boost" means to increase or raise, making "boost its investment" a highly appropriate and common collocation. Grammatically, "to ________" again requires a base verb. "Boost" fits perfectly here ("to boost its investment").

Why other options are incorrect:
- Reduce: While grammatically correct in both sentences, reducing interest rates is generally stimulatory, but reducing investments in renewable energy over five years does not align well with standard positive policy statements, and "Boost" provides a stronger, more positive fit across both contexts.
- High: This is an adjective and cannot follow "to" to form an infinitive verb (e.g., "to high" is grammatically incorrect).
- Freeze: While it is a verb, freezing interest rates or investments does not align well with sending a positive signal or expanding future infrastructure plans.
- Regulates: This is a third-person singular verb form ("regulates") and cannot be used after the infinitive marker "to" (which requires the base form "regulate").

Therefore, Boost is the only word that is grammatically correct and makes complete contextual sense in both sentences.