Question
What should be banks be good at accessing?
Read the following passage carefully and choose the most appropriate answer to the question out of the four alternatives.  Any kind of accounting chicanery that makes the books look rosy will come at the cost of the accuracy with which banks reflect their financial health. Banks, which are supposed to be good at assessing not just debtors’ credibility but also the broader trends in the economy and the financial markets, cannot feign surprise at a rise and fall in bond yields. As Mr. Acharya has pointed out, banks understand the impact of interest rate movements and the risks of bond investments, and they perhaps choose to ignore this thanks to a “heads I win, tails the regulator dispenses” mindset. Just as banks need to be held accountable for their lending decisions and their advances, treasury operations and bond investments also need accountability and risk management systems.ÂSolution
The correct answer is B
More Reading Comprehension Questions
From the viewpoint of culture, the principle of regarding its beliefs, values, and practices is called:
The first Sultan to adopt the principle of measurement of cultivable land for determining the land revenue was
When did Vasco da Gama, a resident of Portugal, reach Kozhikode (Calicut), Kerala, on the western coast of India?
Ayagara in Vijayanagar were
What do you consider to be the least important cause for Alauddin's south Indian campaigns?
The term Iqta means
The city of Ajmer was founded by
Bhand Pather is the traditional theatre form of which of the following states?
Who was the patron deity of Vijayanagar?
Which among the following was the most appropriate cause for the failure of Raziya?
Relevant for Exams:
