General Knowledge MCQs
Topic Notes: General Knowledge
MCQs and preparation resources for competitive exams, covering important concepts, past papers, and detailed explanations.
Plato
- Biography: Ancient Greek philosopher (427–347 BCE), student of Socrates and teacher of Aristotle, founder of the Academy in Athens.
- Important Ideas:
- Theory of Forms
- Philosopher-King
- Ideal State
19031
The FSB's work on **Non-Bank Financial Intermediation (NBFI)**, or the 'shadow banking' sector, aims to address which risk?
Answer:
Lack of transparency and potential for systemic risk outside the regulated banking system.
The FSB monitors and develops policy for the NBFI sector to mitigate potential systemic risks it poses.
19032
What is the key instrument the FSB uses to monitor and report on the implementation of agreed-upon financial reforms by member jurisdictions?
Answer:
High-level self-assessment reports and peer reviews.
Peer review is a core mechanism where members scrutinize each other's progress in implementing reforms.
19033
The FSB promotes the implementation of standards set by which body related to banking supervision?
Answer:
The Basel Committee on Banking Supervision (BCBS).
The FSB coordinates the implementation of BCBS standards (like Basel III) across its member jurisdictions.
19034
The FSB's framework for G-SIFIs includes a requirement for **Total Loss-Absorbing Capacity (TLAC)**. What is TLAC designed to ensure?
Answer:
That failed G-SIFIs can be resolved without taxpayer money (bail-ins).
TLAC requires G-SIFIs to maintain a minimum amount of instruments that can be written down or converted to equity in a crisis.
19035
The FSB addresses the 'too big to fail' problem primarily by developing policy recommendations for:
Answer:
Global Systemically Important Financial Institutions (G-SIFIs).
The FSB coordinates the identification of G-SIFIs (banks, insurers, market infrastructures) and the requirement for them to hold higher capital and implement resolution planning.
19036
Which of the following is NOT a core member of the FSB?
Answer:
All UN Member States.
Membership is limited to major economies and institutions critical to global financial stability (currently around 24 countries plus international bodies).
19037
What is the primary mandate of the FSB?
Answer:
To coordinate international financial regulation and supervision to promote global financial stability.
The FSB's core function is to identify vulnerabilities, develop and promote regulatory policies, and coordinate global regulatory efforts.
19038
The FSB was created at the initiative of which group of countries?
Answer:
The G20
The G20 leaders called for the establishment of the FSB to broaden the membership and strengthen the mandate of the previous FSF.
19039
Where is the permanent headquarters and secretariat of the Financial Stability Board (FSB) located?
Answer:
Basel, Switzerland
The FSB secretariat is hosted by the Bank for International Settlements (BIS) in Basel, Switzerland, which also hosts other key standard-setters like the BCBS.
19040
In what year was the FSB established?
Answer:
2009
The FSB was established in April 2009 as a successor to the Financial Stability Forum (FSF) by the G20 nations, in response to the 2008 global financial crisis.