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
11
The FSB is responsible for identifying and monitoring **Emerging Vulnerabilities** in the global financial system. This involves:
Answer:
Identifying and assessing new and latent risks that could pose a threat to financial stability.
This forward-looking function is key to the FSB's mission to prevent future crises.
12
The FSB's response to the rise of **Crypto-assets** has focused on developing international regulatory frameworks aimed at addressing risks related to:
Answer:
Financial stability, consumer/investor protection, and operational resilience.
The FSB works with standard-setters to ensure that emerging crypto activities are regulated consistently across jurisdictions.
13
Which of the following describes the key relationship between the FSB and the Bank for International Settlements (BIS)?
Answer:
The BIS hosts the FSB secretariat and contributes to its work, but the FSB is accountable to the G20.
The hosting arrangement leverages the BIS's institutional support, data, and research capacity.
14
The FSB is committed to making the resolution of failed G-SIFIs feasible. This includes developing policies for **resolution planning** which are known as:
Answer:
Living Wills.
Living Wills are detailed plans that G-SIFIs must prepare, outlining how they could be wound down in an orderly fashion without causing systemic disruption.
15
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.
16
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.
17
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.
18
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.
19
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.
20
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).