Q1. Choose the option that correctly completes the sentence. The audit committee warned that a prolonged delay in publishing the report would ______ investor confidence and might also have a measurable ______ on the company's credit rating.
Explanation
Affect is normally a verb meaning to influence, while effect is normally a noun meaning result or consequence. In the first blank, the delay would influence or damage investor confidence, so affect is required. In the second blank, the phrase 'a measurable ___ on the company's credit rating' asks for a noun meaning impact; therefore effect is correct. The cue is the article 'a' before the second blank and the active verb position after 'would' in the first blank.
