Para Jumble practice question for SSC. Review the correct answer and explanation, then continue with related practice below.
Arrange the following sentences in the correct order. A. Such behaviour may actually increase total risk if every institution sells the same assets at the same time. B. Regulations may encourage each financial institution to reduce exposure when market prices fall sharply. C. Forced selling by many institutions can push prices down further, triggering additional sales. D. Financial regulation should therefore consider feedback loops created by simultaneous compliance.
Correct Answerसही उत्तर
B. BCAD
Explanationव्याख्या
(English): B introduces the regulatory response.
C explains the downward feedback loop.
A states why individually prudent behaviour can increase system-wide risk.
D gives the regulatory conclusion.
Overall Meaning: Rules that are safe for individual institutions can become destabilising when everyone follows them simultaneously.
व्याख्या (Hindi): B price fall पर institutions द्वारा exposure reduce करने की बात करता है।
C simultaneous selling से prices और गिरने तथा additional selling होने का feedback loop बताता है।
A total risk बढ़ने की संभावना बताता है और D system-wide regulation का निष्कर्ष देता है।
समग्र अर्थ:
जो rule एक financial institution के लिए सुरक्षित हो, वही सभी के एक साथ पालन करने पर पूरे system को अस्थिर कर सकता है।
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