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.
More Reading Comprehension Questions
- Choose the incorrect statement.
- Why did Mahendra need to keep moving from one site to another?
- Which of the following is the most opposite in meaning to the word ‘hazardous’ as used in the passage?
- Which of the following is a synonym of the word ‘driven’?
- What is the meaning of ‘cannot feign surprise’ as used in the passage?
- Choose the word which is most nearly the same in meaning to the word ‘prerogative’ as used in the passage .
- What is the main objective of the Paris Agreement, as discussed in the passage?
- Which of the following best describes the tone of the passage?
- Synonym of foster
- Several studies have pointed out that ________________________________.
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