Daily Passage Test for CLAT - Oct 25 MCQs & solutions Free

They are over-regulated compared to traditional banks. 

They lack adequate regulation and transparency, posing systemic risks. 

They exclusively invest in government bonds. 

They have no impact on global financial markets.

They show that only traditional banks are vulnerable to economic downturns. 

They demonstrate that shocks in nonbank sectors can affect both banks and NBFIs. 

They indicate that nonbank firms operate entirely independently of banks. 

They suggest that only large multinational corporations are affected by financial crises.

Banks have too much capital relative to their assets. 

Banks have limited exposure to nonbank financial institutions. 

Many banks' nonbank exposure exceeds their tier one capital. 

Banks are primarily investing in low-risk government securities.

NBFIs are already over-regulated. 

NBFIs lack access to global financial markets. 

Finding a balance between ensuring financial stability and promoting economic growth. 

NBFIs operate exclusively in emerging markets.

Their influence has decreased significantly. 

They now control approximately half of the world's financial assets. 

They have been entirely replaced by traditional banks. 

They operate exclusively within the technology sector.

Increased stability in the financial system. 

Amplification of financial market downturns and systemic stress. 

Reduced access to credit for consumers. 

Decreased interconnectedness between financial sectors.