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. This means that improving one firm's safety may not reduce system-wide risk if everyone adopts the same strategy. B. Each financial institution decides to protect itself by selling risky assets when prices begin falling. C. If all institutions sell simultaneously, the combined selling pressure drives prices down further. D. Systemic risk therefore depends on interactions among institutions, not merely on the prudence of each one separately.
Correct Answerसही उत्तर
A. BCAD
Explanationव्याख्या
(English): B introduces individually prudent selling.
C shows the collective effect.
A explains why individual safety does not guarantee systemic safety.
D gives the general conclusion.
Overall Meaning: Actions that protect individuals can destabilise the system when everyone behaves the same way.
व्याख्या (Hindi): B individual institutions के defensive selling की बात करता है।
C simultaneous selling से price decline तेज होने की बात करता है।
A individual strategy की systemic limitation बताता है।
D systemic interaction का निष्कर्ष देता है।
समग्र अर्थ: Individual level पर safe action collective level पर system को unstable बना सकती है।
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