DSSSB · General Awareness

How do Systemically Important Financial Institutions (SIFIs) affect financial stability and regulatory oversight?

  1. Increase regulatory burden due to strict monitoring and capital adequacy requirements
  2. Risk diversification in global markets automatically increases stability
  3. Eliminate market volatility by limiting speculative activities
  4. Stabilize interest rates by giving cheaper loan rates to multinational corporations
Answer and detailed solution are available in the protected study screen.
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