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1.  
Choose the correct indirect form: He said to me, “I am busy today.”

Correct Answer: C [He told me that he was busy that day.]

Explanation:

Rule NA2 – said to + object → told + object.

2.  
Choose the correct indirect form: She said, “Where do you keep the keys?”

Correct Answer: A [She asked where I kept the keys.]

Explanation:

Rule NA5 – questions → asked + question word / if, whether + statement order (no question mark).

3.  
Choose the correct indirect form: The officer said to the guard, “Close the gate.”

Correct Answer: C [The officer ordered the guard to close the gate.]

Explanation:

Rule NA6 – commands and requests → told / ordered / requested + object + to + V1 ( not to for negatives).

4.  
If the bank ________ the interest rate, more people would borrow.

Correct Answer: D [lowered]

Explanation:

Rule CD2 – Second – unreal present or future.

5.  
________ I known about the strike, I would have taken leave.

Correct Answer: E [Had]

Explanation:

Rule CD4 – Inversion (formal).

6.  
He must ________ the bus; he is not at the stop.

Correct Answer: B [have missed]

Explanation:

Rule MO4 – must have + V3 = sure deduction about the past.

7.  
The new branch is superior ________ the old one in every way.

Correct Answer: E [to]

Explanation:

Rule PR7 – superior, inferior, senior, junior, prior, prefer, preferable.

8.  
He was accused ________ forging a signature on the cheque.

Correct Answer: C [of]

Explanation:

Rule PR8 – accuse, afraid, aware, capable, consist, fond, guilty.

9.  
There were ________ customers today than yesterday.

Correct Answer: A [fewer]

Explanation:

Rule AD3 – fewer with countable nouns, less with uncountable.

10.  
I am on duty today, ________?

Correct Answer: D [aren't I]

Explanation:

Rule QT4 – I am → aren't I?

11.  
There ________ a few errors in the report.

Correct Answer: B [are]

Explanation:

Rule SV12 – there is / there are agrees with the noun that follows.

12.  
The proposal sounds ________ to me.

Correct Answer: E [reasonable]

Explanation:

Rule AD4 – after linking verbs (be, seem, look, sound, taste, feel, smell, become) use an adjective.

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