The given question consists of two words, "CAB" and "BRITISH". The correct answer, "AMERICAN", can be derived by taking the first letter of each word and forming a new word. By taking the first letter of "CAB", we get "C", and by taking the first letter of "BRITISH", we get "B". Therefore, the combination of these two letters forms the word "CB". However, this is not the correct answer. Instead, we need to take the first letter of the word "AMERICAN", which is "A", and combine it with the previous letters "CB" to form "ACB". Hence, the correct answer is "AMERICAN".