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      Question

      What do macro stress tests in the Financial Stability

      Report indicate about Scheduled Commercial Banks (SCBs) in India?
      A Inadequate capital buffers Correct Answer Incorrect Answer
      B Likely to fall below regulatory minimums Correct Answer Incorrect Answer
      C Resilient to hypothetical adverse scenarios Correct Answer Incorrect Answer
      D Persistent liquidity shortages Correct Answer Incorrect Answer
      E Deteriorating profitability Correct Answer Incorrect Answer

      Solution

      Macro stress tests show that SCBs can withstand hypothetical adverse scenarios and are capable of maintaining capital levels well above regulatory minimums, demonstrating their resilience according to the RBI’s Financial Stability Report.

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