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Consider the following statements:
Statement-I:
Domestic Systemically Important Banks (D-SIBs) are financial institutions that are deemed too large to fail.
Statement-II:
D-SIBs are subject to a different set of regulatory standards aimed at addressing systemic risks and moral hazard issues.
Which one of the following is correct in respect of the above statements?
Domestic Systemically Important Banks (D-SIBs) are financial institutions that are deemed too large to fail.
Statement-II:
D-SIBs are subject to a different set of regulatory standards aimed at addressing systemic risks and moral hazard issues.
Which one of the following is correct in respect of the above statements?
- a)Both Statement-I and Statement-II are correct and Statement-II explains Statement-I
- b)Both Statement-I and Statement-II are correct, but Statement-II does not explain Statement-I
- c)Statement-I is correct, but Statement-II is incorrect
- d)Statement-I is incorrect, but Statement-II is correct
Correct answer is option 'A'. Can you explain this answer?
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Most Upvoted Answer
Consider the following statements:Statement-I:Domestic Systemically I...
Statement-I correctly defines Domestic Systemically Important Banks (D-SIBs) as financial institutions deemed too large to fail, which is accurate based on the provided information. Statement-II is also correct as D-SIBs are indeed subject to a different set of regulatory standards to address systemic risks and moral hazard issues, which complements and explains the significance of D-SIBs as highlighted in Statement-I. Together, these statements provide a comprehensive understanding of D-SIBs and their regulatory framework.
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Consider the following statements:Statement-I:Domestic Systemically I...
Understanding Domestic Systemically Important Banks (D-SIBs)
Domestic Systemically Important Banks (D-SIBs) play a crucial role in the financial system of a country. Let’s break down the two statements and their relationship.
Statement-I: Definition of D-SIBs
- Correctness: Statement-I is accurate.
- Explanation: D-SIBs are indeed financial institutions that are considered "too big to fail." Their failure could significantly harm the financial system and the economy.
Statement-II: Regulatory Standards for D-SIBs
- Correctness: Statement-II is also correct.
- Explanation: D-SIBs are subjected to enhanced regulatory standards. This includes higher capital requirements and closer supervision, aimed at mitigating systemic risks and addressing moral hazard issues.
Relationship Between the Statements
- Connection: Statement-II explains the rationale behind Statement-I.
- Significance: The regulatory measures are put in place specifically because these banks pose a risk to the overall financial stability if they were to fail.
Conclusion
- Both statements highlight essential aspects of D-SIBs:
- Statement-I identifies their importance in the financial ecosystem.
- Statement-II outlines the regulatory framework designed to prevent their failure and mitigate associated risks.
As such, the correct answer is option 'A': Both Statement-I and Statement-II are correct, and Statement-II explains Statement-I. This interconnectedness underscores the critical nature of D-SIBs in maintaining financial stability.
Domestic Systemically Important Banks (D-SIBs) play a crucial role in the financial system of a country. Let’s break down the two statements and their relationship.
Statement-I: Definition of D-SIBs
- Correctness: Statement-I is accurate.
- Explanation: D-SIBs are indeed financial institutions that are considered "too big to fail." Their failure could significantly harm the financial system and the economy.
Statement-II: Regulatory Standards for D-SIBs
- Correctness: Statement-II is also correct.
- Explanation: D-SIBs are subjected to enhanced regulatory standards. This includes higher capital requirements and closer supervision, aimed at mitigating systemic risks and addressing moral hazard issues.
Relationship Between the Statements
- Connection: Statement-II explains the rationale behind Statement-I.
- Significance: The regulatory measures are put in place specifically because these banks pose a risk to the overall financial stability if they were to fail.
Conclusion
- Both statements highlight essential aspects of D-SIBs:
- Statement-I identifies their importance in the financial ecosystem.
- Statement-II outlines the regulatory framework designed to prevent their failure and mitigate associated risks.
As such, the correct answer is option 'A': Both Statement-I and Statement-II are correct, and Statement-II explains Statement-I. This interconnectedness underscores the critical nature of D-SIBs in maintaining financial stability.
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Consider the following statements:Statement-I:Domestic Systemically Important Banks (D-SIBs) are financial institutions that are deemed too large to fail.Statement-II:D-SIBs are subject to a different set of regulatory standards aimed at addressing systemic risks and moral hazard issues.Which one of the following is correct in respect of the above statements?a)Both Statement-I and Statement-II are correct and Statement-II explains Statement-Ib)Both Statement-I and Statement-II are correct, but Statement-II does not explain Statement-Ic)Statement-I is correct, but Statement-II is incorrectd)Statement-I is incorrect, but Statement-II is correctCorrect answer is option 'A'. Can you explain this answer?
Question Description
Consider the following statements:Statement-I:Domestic Systemically Important Banks (D-SIBs) are financial institutions that are deemed too large to fail.Statement-II:D-SIBs are subject to a different set of regulatory standards aimed at addressing systemic risks and moral hazard issues.Which one of the following is correct in respect of the above statements?a)Both Statement-I and Statement-II are correct and Statement-II explains Statement-Ib)Both Statement-I and Statement-II are correct, but Statement-II does not explain Statement-Ic)Statement-I is correct, but Statement-II is incorrectd)Statement-I is incorrect, but Statement-II is correctCorrect answer is option 'A'. Can you explain this answer? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Consider the following statements:Statement-I:Domestic Systemically Important Banks (D-SIBs) are financial institutions that are deemed too large to fail.Statement-II:D-SIBs are subject to a different set of regulatory standards aimed at addressing systemic risks and moral hazard issues.Which one of the following is correct in respect of the above statements?a)Both Statement-I and Statement-II are correct and Statement-II explains Statement-Ib)Both Statement-I and Statement-II are correct, but Statement-II does not explain Statement-Ic)Statement-I is correct, but Statement-II is incorrectd)Statement-I is incorrect, but Statement-II is correctCorrect answer is option 'A'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Consider the following statements:Statement-I:Domestic Systemically Important Banks (D-SIBs) are financial institutions that are deemed too large to fail.Statement-II:D-SIBs are subject to a different set of regulatory standards aimed at addressing systemic risks and moral hazard issues.Which one of the following is correct in respect of the above statements?a)Both Statement-I and Statement-II are correct and Statement-II explains Statement-Ib)Both Statement-I and Statement-II are correct, but Statement-II does not explain Statement-Ic)Statement-I is correct, but Statement-II is incorrectd)Statement-I is incorrect, but Statement-II is correctCorrect answer is option 'A'. Can you explain this answer?.
Consider the following statements:Statement-I:Domestic Systemically Important Banks (D-SIBs) are financial institutions that are deemed too large to fail.Statement-II:D-SIBs are subject to a different set of regulatory standards aimed at addressing systemic risks and moral hazard issues.Which one of the following is correct in respect of the above statements?a)Both Statement-I and Statement-II are correct and Statement-II explains Statement-Ib)Both Statement-I and Statement-II are correct, but Statement-II does not explain Statement-Ic)Statement-I is correct, but Statement-II is incorrectd)Statement-I is incorrect, but Statement-II is correctCorrect answer is option 'A'. Can you explain this answer? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Consider the following statements:Statement-I:Domestic Systemically Important Banks (D-SIBs) are financial institutions that are deemed too large to fail.Statement-II:D-SIBs are subject to a different set of regulatory standards aimed at addressing systemic risks and moral hazard issues.Which one of the following is correct in respect of the above statements?a)Both Statement-I and Statement-II are correct and Statement-II explains Statement-Ib)Both Statement-I and Statement-II are correct, but Statement-II does not explain Statement-Ic)Statement-I is correct, but Statement-II is incorrectd)Statement-I is incorrect, but Statement-II is correctCorrect answer is option 'A'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Consider the following statements:Statement-I:Domestic Systemically Important Banks (D-SIBs) are financial institutions that are deemed too large to fail.Statement-II:D-SIBs are subject to a different set of regulatory standards aimed at addressing systemic risks and moral hazard issues.Which one of the following is correct in respect of the above statements?a)Both Statement-I and Statement-II are correct and Statement-II explains Statement-Ib)Both Statement-I and Statement-II are correct, but Statement-II does not explain Statement-Ic)Statement-I is correct, but Statement-II is incorrectd)Statement-I is incorrect, but Statement-II is correctCorrect answer is option 'A'. Can you explain this answer?.
Solutions for Consider the following statements:Statement-I:Domestic Systemically Important Banks (D-SIBs) are financial institutions that are deemed too large to fail.Statement-II:D-SIBs are subject to a different set of regulatory standards aimed at addressing systemic risks and moral hazard issues.Which one of the following is correct in respect of the above statements?a)Both Statement-I and Statement-II are correct and Statement-II explains Statement-Ib)Both Statement-I and Statement-II are correct, but Statement-II does not explain Statement-Ic)Statement-I is correct, but Statement-II is incorrectd)Statement-I is incorrect, but Statement-II is correctCorrect answer is option 'A'. Can you explain this answer? in English & in Hindi are available as part of our courses for UPSC.
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Here you can find the meaning of Consider the following statements:Statement-I:Domestic Systemically Important Banks (D-SIBs) are financial institutions that are deemed too large to fail.Statement-II:D-SIBs are subject to a different set of regulatory standards aimed at addressing systemic risks and moral hazard issues.Which one of the following is correct in respect of the above statements?a)Both Statement-I and Statement-II are correct and Statement-II explains Statement-Ib)Both Statement-I and Statement-II are correct, but Statement-II does not explain Statement-Ic)Statement-I is correct, but Statement-II is incorrectd)Statement-I is incorrect, but Statement-II is correctCorrect answer is option 'A'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of
Consider the following statements:Statement-I:Domestic Systemically Important Banks (D-SIBs) are financial institutions that are deemed too large to fail.Statement-II:D-SIBs are subject to a different set of regulatory standards aimed at addressing systemic risks and moral hazard issues.Which one of the following is correct in respect of the above statements?a)Both Statement-I and Statement-II are correct and Statement-II explains Statement-Ib)Both Statement-I and Statement-II are correct, but Statement-II does not explain Statement-Ic)Statement-I is correct, but Statement-II is incorrectd)Statement-I is incorrect, but Statement-II is correctCorrect answer is option 'A'. Can you explain this answer?, a detailed solution for Consider the following statements:Statement-I:Domestic Systemically Important Banks (D-SIBs) are financial institutions that are deemed too large to fail.Statement-II:D-SIBs are subject to a different set of regulatory standards aimed at addressing systemic risks and moral hazard issues.Which one of the following is correct in respect of the above statements?a)Both Statement-I and Statement-II are correct and Statement-II explains Statement-Ib)Both Statement-I and Statement-II are correct, but Statement-II does not explain Statement-Ic)Statement-I is correct, but Statement-II is incorrectd)Statement-I is incorrect, but Statement-II is correctCorrect answer is option 'A'. Can you explain this answer? has been provided alongside types of Consider the following statements:Statement-I:Domestic Systemically Important Banks (D-SIBs) are financial institutions that are deemed too large to fail.Statement-II:D-SIBs are subject to a different set of regulatory standards aimed at addressing systemic risks and moral hazard issues.Which one of the following is correct in respect of the above statements?a)Both Statement-I and Statement-II are correct and Statement-II explains Statement-Ib)Both Statement-I and Statement-II are correct, but Statement-II does not explain Statement-Ic)Statement-I is correct, but Statement-II is incorrectd)Statement-I is incorrect, but Statement-II is correctCorrect answer is option 'A'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice Consider the following statements:Statement-I:Domestic Systemically Important Banks (D-SIBs) are financial institutions that are deemed too large to fail.Statement-II:D-SIBs are subject to a different set of regulatory standards aimed at addressing systemic risks and moral hazard issues.Which one of the following is correct in respect of the above statements?a)Both Statement-I and Statement-II are correct and Statement-II explains Statement-Ib)Both Statement-I and Statement-II are correct, but Statement-II does not explain Statement-Ic)Statement-I is correct, but Statement-II is incorrectd)Statement-I is incorrect, but Statement-II is correctCorrect answer is option 'A'. Can you explain this answer? tests, examples and also practice UPSC tests.
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