Which of the following is a feature of the 'Carbon Border Adjustment Mechanism' proposals?
A. Only domestic carbon taxes without border measures
B. A levy on imports based on their embedded carbon content to prevent carbon leakage and protect domestic climate policies
C. A complete ban on all imports
D. Only export subsidies for green goods
Answer: Option B
Solution (By JKSSB Mock Tests)
A carbon border adjustment mechanism imposes a charge on imported goods equivalent to the domestic carbon price, thereby reducing the risk of carbon leakage and maintaining the competitiveness of domestic producers.
Explanation:
Capital Adequacy Ratio (CAR) requires banks to hold a minimum amount of capital in proportion to their risk-weighted assets to absorb potential losses and protect depositors.
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