Question
Each sentence has one blank. Choose the most
appropriate word to make the sentence grammatically and contextually correct. Regulatory interventions that are perceived as inconsistent or poorly enforced may inadvertently ______ risk-taking behaviour rather than discourage it, thereby undermining financial stability.Solution
The correct word is incentivise, which means to encourage or motivate a particular behaviour. Weak or inconsistent regulation can unintentionally reward risky actions. Provoke and trigger suggest sudden reactions. Accelerate and amplify relate to speed or magnitude, not motivation. Only incentivise accurately reflects the unintended encouragement of risk-taking described in the sentence.
In the CAPM model, the expected return is expressed as:
E(R)=Rf+β(Rm−Rf)
Here, what does the risk-free rate (Râ‚“) represent or compens...
Long term assets without any physical existence but, possessing a value are calledÂ
Calculate the Quick ratio based on above information?
Find out the Ordering Level from the following information:
What is the purpose of performing Due Diligence by banks under KYC norms?
In CAPM, the risk-free rate is:
Which form is required for preparing the Balance Sheet of an insurance company engaged in general insurance business?
Which of the following errors will not affect the trial balance?
An entry with more than one debit or credit is known asÂ
Other things remaining the same, infusion of fresh equity will ______ the credit profile of a company.
Relevant for Exams:
