For the first sentence of the paragraph, we have two contenders—A and C. Both these sentences relate to debt build-up in households during the financial crisis. Of these, C is more general, and talks of the build-up of debt in households and in non-financial firms as "a crucial aspect" of the 2008 financial crisis. Sentence A carries this idea forward—the rise in private debt led to a drop in household consumption, which, in turn, was a key driver of the recession. So, A follows C. Both B and D relate to the lack of regulatory control during the crisis. D states that regulatory failure was the principal cause of the crisis. B adds to this, stating that there are two aspects to this regulatory failure—(a) the lack of regulatory control over the growth in credit, and (b) the lack of regulatory control over flow of credit into real estate. So, B follows D. The flow of ideas from A to D is also smooth. While a drop in household consumption resulted in recession, there is no doubt that regulatory failure was the principal cause of the crisis. CADB is the right order. Correct Answer: CADB
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