Which of the following is a characteristic of 'Libertarian Paternalism'?
A. The complete rejection of any paternalistic intervention
B. The design of policies that steer people toward better choices while preserving freedom of choice
C. Only laissez-faire without any guidance
D. The use of mandates that eliminate choice
Answer: Option B
Solution (By JKSSB Mock Tests)
Libertarian paternalism, the philosophical foundation of nudge theory, advocates interventions that improve welfare by guiding choices without restricting the set of available options.
Explanation:
The Liquidity Coverage Ratio (LCR) requires banks to maintain an adequate stock of unencumbered high-quality liquid assets that can be converted into cash to meet liquidity needs for a 30-calendar-day stress scenario.
No comments yet. Be the first to start the discussion!