Tricky Possesive Pronoun

[Drizzling Beauty]

1.Although the coordination of monetary policy can help facilitate the orderly financing of existing imbalances, it is unlikely that its effect on their size is significant in the absence of an appropriate fiscal adjustment.
(A) it is unlikely that its effect on their size is significant
(B) it is unlikely that the size of their effect would be significant
(C) affecting their sizes are not likely to be significant
(D) the significance of their effect on its size is unlikely
(E) its effect on their size is not likely to be significant


OA is E but can a possessive pronoun "its" have a Subject noun "monetary policy" as the antecedent.....kindly enlighten....por favor, El Señor discuss this point only as other mistakes in the answer choices are not the matter of discussion here....

[arindambanerji]

"its" refer to "the coordination of monetary policy"

[Drizzling Beauty]

Thanks a ton Arindam....I got the point...