New RBI Grade B 2025 Notification will come Soon! Enroll Here

    Question

    Which of the following Statements is/are True?

    I. D-SIIs are perceived as insurers that are ‘too big or too important to fail’ (TBTF). II. D-SIIs refer to insurers of such size, market importance and domestic and global interconnectedness whose distress or failure would cause a significant dislocation in the domestic financial system. III. The continued functioning of D-SIIs is critical for the uninterrupted availability of insurance services to the national economy.
    A Only I Correct Answer Incorrect Answer
    B Only II Correct Answer Incorrect Answer
    C I & II Correct Answer Incorrect Answer
    D II & III Correct Answer Incorrect Answer
    E All of the above Correct Answer Incorrect Answer

    Solution

    D-SIIs are perceived as insurers that are ‘too big or too important to fail’ (TBTF). D-SIIs refer to insurers of such size, market importance and domestic and global interconnectedness whose distress or failure would cause a significant dislocation in the domestic financial system. Thus, the continued functioning of D-SIIs is critical for the uninterrupted availability of insurance services to the national economy.

    Practice Next

    Relevant for Exams: