ECONOMICS (CBSE/UGC NET)

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ECONOMICS

FINANCIAL MARKETS

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
The work of the Prudential Regulation Authority (PRA) involves maintaining the stability of banks and promoting effective competition by:Supervising firms and financial institutions to ensure that they successfully manage risk; Setting industry standards for conduct and management and making sure they’re followed; and specifying capital and liquidity ratios for financial institutions.
A
Yes, I understand this from the notes
B
No, I don’t understand this from the notes
C
No, I don’t understand this, as I have not read the notes
D
None of the above
Explanation: 

Detailed explanation-1: -The Prudential Regulation Authority (PRA) is a part of the Bank of England and responsible for the prudential regulation and supervision of banks, building societies, credit unions, insurers and major investment firms. It sets standards and supervises financial institutions at the level of the individual firm.

Detailed explanation-2: -We are the Prudential Regulation Authority As part of the Bank of England, we are responsible for the prudential regulation and supervision of around 1, 500 banks, building societies, credit unions, insurers and major investment firms.

Detailed explanation-3: -The PRA’s approach to supervision The PRA’s approach is forward-looking: it assesses firms not just against current risks, but also against those that could plausibly arise in the future.

Detailed explanation-4: -The Prudential Regulation Authority regulates around 1, 500 banks, building societies, credit unions, insurers and major investment firms.

There is 1 question to complete.
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