free Online Test Cloze Test Questions and Answers Quiz 47
Description: Free Online Test questions and answers on Cloze Test with explanation for various competitive exams,entrance test. Solved examples with detailed answer test 47
"In the middle of difficulty lies opportunity."
- Albert Einstein
Directions(1 to 10):India’s approach towards treatment of (1) banks is
yet another interesting issue. Rather than closing
them down, policymakers in India have shown a
preference to (2)such banks with healthy public sector
banks. It has been (3) in certain circles that such an
approach may give rise to a moral hazard problem.
However, two issues need (4) in this context. First,
commerci al banks are the most domi nant and
systemi cally important segment of the financial
system. Second, over 70 per cent of the bank
depositors in India are small depositors. Therefore,
systemic concerns coupled with the necessity to (5)
the interest of small depositors have been (6) in the
minds of policy makers while (7) with insolvent banks.
This issue had not (8) much attention in the context
of a predominantly government-owned banking system.
As the weight of private banks increases further
thinking will need to be done on this subject, both in
terms of (9) of insolvency through advance regulatory
supervision and action, and post-insolvency measures
that (10) moral hazard and eventual fiscal cost