In the context of banking, the 'Net Stable Funding Ratio' under Basel III is designed to:
A. Set the repo rate
B. Determine capital adequacy only
C. Measure only short-term liquidity over 30 days
D. Ensure that banks maintain a stable funding profile over a one-year horizon
Answer: Option D
Solution (By JKSSB Mock Tests)
The Net Stable Funding Ratio (NSFR) requires banks to maintain a stable funding profile in relation to their on- and off-balance-sheet activities over a one-year time horizon.
Explanation:
The Digital Services Act establishes a horizontal framework of due-diligence, transparency and accountability obligations for digital intermediary services, including online platforms, with respect to illegal content and systemic risks.
Explanation:
Buffer-stock models emphasise that money balances serve as a short-run shock absorber, allowing agents to smooth consumption in the face of transitory income or expenditure shocks.
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