The problem may ___ in the lack of financing.

The problem may ___ in the lack of financing.

• A. Live
• B. Lay
• C. Lie
• D. Lieu

Answer: (C)

Think about how verbs follow a modal like may. After may, you use the base form of the verb, and you want a verb that means “to be located.” The word that fits means the problem is situated in the lack of financing, so lie is the correct choice. It’s an intransitive verb meaning to be in a certain place or situation, and it naturally pairs with the construction “may lie in.” The other words don’t work here: live would sound odd and is not the right verb for stating location; lay is transitive (it requires a object to act on) and after a modal would be incorrect in this context; lieu is a noun meaning “place” and can’t function as a verb in this sentence.

Think about how verbs follow a modal like may. After may, you use the base form of the verb, and you want a verb that means “to be located.” The word that fits means the problem is situated in the lack of financing, so lie is the correct choice. It’s an intransitive verb meaning to be in a certain place or situation, and it naturally pairs with the construction “may lie in.” The other words don’t work here: live would sound odd and is not the right verb for stating location; lay is transitive (it requires a object to act on) and after a modal would be incorrect in this context; lieu is a noun meaning “place” and can’t function as a verb in this sentence.