The concept of 'Macroprudential Policy' aims at: MCQ with Answer and Explanation

The concept of 'Macroprudential Policy' aims at:
A. Only price stability
B. Only the soundness of individual institutions
C. Only fiscal sustainability
D. Limiting systemic risk and ensuring the stability of the financial system as a whole
Answer: Option D
Solution (By JKSSB Mock Tests)
Macroprudential policy uses regulatory and supervisory tools to mitigate systemic risk and to increase the resilience of the financial system as a whole, complementing microprudential supervision of individual institutions.

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Practice More Economy Set 1 Questions

Question #1
The 'four-sector economy' circular flow includes:
A. households, government, banks and firms
B. households, firms, banks and foreign sector
C. households, firms, government and foreign sector
D. households, firms, government and banks only

Correct Answer: Option C


Explanation:
A four-sector economy includes households, firms, government and the external sector.

This question belongs to: Economy GK Economy Set 1
Question #2
The term 'Invisible Trade' in the balance of payments refers to:
A. Only capital transfers
B. Only foreign direct investment
C. Trade in goods only
D. Trade in services, income and transfers

Correct Answer: Option D


Explanation:
Invisible trade (or invisibles) includes trade in services (such as tourism, software, transportation), income (interest, dividends) and unilateral transfers.

This question belongs to: Economy GK Economy Set 1
Question #3
The 'currency chests' in India are operated by:
A. treasury departments
B. RBI only
C. banks on behalf of RBI
D. post offices

Correct Answer: Option C


Explanation:
Currency chests are operated by selected banks on behalf of the RBI for currency storage and distribution.

This question belongs to: Economy GK Economy Set 1