Care taken in advance to avoid a risk. ?->(Show Answer!)

1. Care taken in advance to avoid a risk.

Answer: Precaution

Reply

Comments

Tags

Show Similar Question And Answers

QA->Care taken in advance to avoid a risk.....

QA->Vacuum advance mechanism for ignition advance in a petrol engine performs effectively at :....

QA->In a computer network, functions of dialog management and synchronization are taken care of in the :....

QA->Detection and prevention of fraud in the Government system of audit is taken care by:....

QA->The Ministry of Information and Culture of which country asked all TV channels to avoid running commercial advertisements featuring female models on November 3, 2014?....

MCQ-> Read the following passage carefully and answer’ the questions. Certain words/phrases are given in bold to help you locate them while answering some of the questions.Since its creation in the 17th century, insurers have amassed policies in each class of risk they cover. Thanks to technology, insurers now have access to more and more information about the risks that individuals run. Car insurers have begun to set premiums based on how actual drivers behave, with “telematic” tracking devices to show how often they speed or slam, on the brakes. Analysts at Morgan Stanley, a bank, predict that damage to insured homes will fall by 4060% if smart sensors are installed to monitor, say, frayed electrical wiring. Some health insurers provide digital fitness bands to track policyholders’ vital signs— and give discounts if they lead a healthier life. But the data can °lily go so far. Even the safest driver can be hit by a falling tree; people in connected homes still fall off ladders, but the potential gains from smart insurance are large. First, giving people better insights into how they are managing risk should help them change their behaviour for the better. Progressive, an American car insurer, tells customers who use its trackers where they tend to drive unsafely; they crash less often as a result. Second, pricing will become keener for consumers. The insurance industry made $338 billion in profits last year. More accurate risk assessment should result in lower premiums for many policyholders. Third, insurers should be able to spot fraud more easily, by using data to verify claims.But two worries stand out. One is a fear that insurers will go from being companies you hope never to deal with to ones that watch your every move. The other, thornier problem is that insurers will cherry pick the good risks, leaving some people without a safety net or to be taken care of by the state. Forgone privacy is the price the insured pay for receiving personalised pricing. Many people are indeed willing to share their data, but individuals should always have to opt in to do so. Some worry that this safeguard may not be enough; the financial costs of not sharing data may be so great that people have no real choice over whether to sign up. The second concern is the worry that more precise underwriting will create a class of uninsurable people, selected out of insurers’ businesses because they are too high a risk. For some types of cover, that would be a reasonable outcome. People who choose to drive like maniacs should have a hard time getting insurance. By the same token, it makes sense to offer rewards, in the form of discounts to premiums, to customers who behave well. Incentivising people to eat better, exercise regularly, drink in moderation and avoid smoking would reap huge health dividends. Where things get harder is with risks that individuals can not control. There are few things that people have less choice about than their genes. One option is to distort the market by requiring insurers to be blind to genetic data. In 2011, for example, Europe banned insurers from using gender to calculate annuities. Now that a man’s shorter lifespans are no longer taken into account that has led to lower payments. Until the interplay between nature and nurture is better understood, it is right to be cautious. Insurers should be able to take note of customers’ behaviour, but not exploit information from genetic testing. However, as data analysis and the understanding of genetics improve, that line will only become harder to hold.Which of the following can be said about the insurance industry ?
...

MCQ-> Analyse the following passage and provide appropriate answers for questions that follow. Certain variants of key behavioural genes, “risk allele” make people more vulnerable to certain mood, psychiatric, or personality disorders. An allele is any of the variants of a gene that takes more than one form. A risk allele, then, is simply a gene variant that increases your likelihood of developing a problem. Researchers have identified a dozen - odd gene variants that can increase a person’s susceptibility to depression, anxiety and antisocial, sociopathic, or violent behaviours, and other problems - if, and only if, the person carrying the variant suffers a traumatic or stressful childhood or faces particularly trying experiences later in life. This hypothesis, often called the “stress diathesis” or “genetic vulnerability” model, has come to saturate psychiatry and behavioural science. Recently, however, an alternate hypothesis has emerged from this one and is turning it inside out. This new model suggests that it’s a mistake to understand these “risk” genes only as liabilities. According to this new thinking, these “bad genes” can create dysfunctions in unfavourable contexts - but they can also enhance function in favourable contexts. The genetic sensitivities to negative experience that the vulnerability hypothesis has identified, it follows, are just the downside of a bigger phenomenon: a heightened genetic sensitivity to all experience. This hypothesis has been anticipated by Swedish folk wisdom which has long spoken of “dandelion” children. These dandelion children - equivalent to our “normal” or “healthy” children, with “resilient” genes - do pretty well almost anywhere, whether raised in the equivalent of a sidewalk crack or well - tended garden. There are also “orchid” children, who will wilt if ignored or maltreated but bloom spectacularly with greenhouse care. According to this orchid hypothesis, risk becomes possibility; vulnerability becomes plasticity and responsiveness. Gene variants generally considered misfortunes can instead now be understood as highly leveraged evolutionary bets, with both high risks and high potential rewards. In this view, having both dandelion and orchid kids greatly raises a family’s (and a species’) chance of succeeding, over time and in any given environment. The behavioural diversity provided by these two different types of temperament also supplies precisely what a smart, strong species needs if it is to spread across and dominate a changing world. The many dandelions in a population provide an underlying stability. The less - numerous orchids, meanwhile, may falter in some environments but can excel in those that suit them. And even when they lead troubled early lives, some of the resulting heightened responses to adversity that can be problematic in everyday life - increased novelty - seeking, restlessness of attention, elevated risk - taking, or aggression - can prove advantageous in certain challenging situations: wars, social strife of many kinds, and migrations to new environments. Together, the steady dandelions and the mercurial orchids offer an adaptive flexibility that neither can provide alone. Together, they open a path to otherwise unreachable individual and collective achievements.The passage suggests ‘orchids’:
...

MCQ-> Read the passage below and choose the most appropriate answer for the questions that follow. Passage I one pictured a woman holding an hourglass next to the words: "Beauty has no age limit. Fertility does." Another portrayed a pair of baby shoes wrapped in a ribbon of the Italian flag. Yet another showed a man holding a half-burned cigarette: "Don't let your sperm go up in smoke" it read. They were part of a government effort to promote "Fertility Day" on Sept. 22? a campaign intended to encourage Italians to have more babies. Instead, the ads set off a furore, were denounced as being offensive, and within days were withdraw. What they did succeed in doing, however, was to ignite a deeper and lasting debate about why it is that Italy has one of the lowest birthrates in the world, and what can be done about it. The problem is not a lack of desire to have children, critics of the campaign say, but rather the lack of meaningful support provided by the government and many employers in a country where the family remains the primary source of child care. Many working women, without an extended family to care for a child, face a dilemma, as private child care is expensive. Some also worry that their job security maybe undermined by missing workdays because of child care issues. Many companies do not offer flexible hours for working mothers.Not surprisingly. Italy's long slowdown in childbirth has coincided with its recent economic slump. But Italian families have been shrinking for decades. In 2015, 488,000 babies were born in Italy, the fewest since the country first unified in 1861. It has one of the lowest birthrates in Europe, with 1.37 children per woman, compared with a European average of 1.6, according to Eurostat figures. By contrast, in France, the economy has been flat, too, but a family-oriented system provides a far more generous social safety net that includes day care and subsidies for families to have children. There, women have two children each on average. The Ministry of Health began the fertility campaign on Aug. 31 with a group of online advertisements and a hashtag on Twitter. The goal was to publicize a series of public meetings on Fertility Day and encourage Italians to have more children. Even Prime Minister Matteo Renzi, whose own health minister started the campaign distanced himself from the ads in a radio interview. Under Mr. Renzi, Italy's government has p families with a so-called baby bonus of 80 to 160 euros, or about $90 to $180, for low- and middle-income households. and it has approved labor laws giving more flexibility on parental leave. But Italy allocates only 1 percent of its gross domestic product to social protection benefits — half the European average. One child out of three here is at risk of relative poverty.Italy's health minister, Beatrice Lorenzin, responding on Facebook, wrote that the Fertility Day, campaign was not a "call to reproduction" but a day to discuss "the fertility issues that 15 percent of Italians deal with." She promptly cancelled the campaign. "I am saddened that the launch of the advertising campaign misled many people,"Ms.Lorenzine said. "I withdrew it to change it."Which one of the following sentences is inaccurate based on all the facts detailed in the passage?
...

MCQ-> Read the following passage carefully and answer the given questions. Certain words/phrases have been given in bold to help you locate them while answering some of the questions. Virtual currencies are growing in popularity. While the collective value of virtual currencies is still a fraction of the total U.S. Dollars in circulation, the use of virtual currencies as a payment mechanism of transfer of value is gaining momentum. Additionally, the number of entities (issuers, exchangers and intermediaries, to name just a few) that engage in virtual currency transactions is increasing and these entities often need access to traditional banking services.Virtual currencies are digital representations of value that function as a medium of exchange, a unit of account and a store of value (buy now redeem later policy). In many cases, virtual currencies are “convertible” currencies; they are not legal lenders, but they have an equivalent value in real currency. Despite what seems to be a tremendous interest in virtual currencies their overall value is still extremely small relative to other payment mechanisms, such as cash, cheques and credit and debit cards. The virtual currency landscape includes many participants from the merchant that accepts the virtual currency, to the intermediary that exchanges the virtual currency on behalf of the merchant, to the exchange that actually converts the virtual currency to the real currency to the electronic wallet provider that holds the virtual currency on behalf of its owner. Accordingly, opportunities abound for community banks to provide services to entities engaged in virtual currency activities. Eventually, it is also possible that community banks may find themselves holding virtual currency on their own balance sheets.Launched in 2009, Silicon is currently the largest and most popular virtual currency. However, many other virtual currencies have emerged over the past few years, such as Litecoin, Dogecoin, Peercoin and these provide even more anonymity to its users than that provided by Bitcoin.As the virtual currency landscape is fraught with dangers, what important risks should community bankers consider?The most significant is compliance risk- a subset of legal risk. Specifically, virtual currency administrators or legal exchangers may present risks similar to other money transmitters, as well in presenting their own unique risks. Quite simply, many users of virtual currencies do so because of the perceptions that transactions conaucted using virtual currencies are anonymous. The less-than transparent nature of the transactions, :nay make it more difficult for a inancial institution to truly know and understand the activities of its customer and whether the customer’s activities are legal. Therefore, these transactions may present a higher risk for banks and require additional due diligence and monitoring.Another important risk for community banks to consider is credit risk. How should a community bank respond if a borrower wants to specifically post Bitcoin or another virtual currency as collateral for a loan? For many, virtual currencies are simply another form of cash, so it is not hard to analyse that bankers will face such a scenario at some point. In this case, caution is appropriate. Bankers should carefully weigh the pros and cons of extending any loan secured by Bitcoin or other virtual currencies (in whole or in part), or where the source of loan repayment is in some way dependent on the virtual currency. For one, the value of Bitcoin in particular has been volatile. Then, the collateral value could fluctuate widely from day-to-day. Bankers also need to think about control over the account. ‘How does the banker control access to a virtual wallet, and how can it control the borrower’s access to the virtual wallet? In the event of a loan default, the bank would need to take control of the virtual currency. This would require access to the borrower’s virtual wallet and private key. All of this suggests that the loan agreement needs to be carefully crafted and that additional steps need to be taken to ensure the bank has a perfected lift on the virtual currency.Virtual currencies bring with them, both opportunities and challenges, and they are likely here to stay. Although, it is too early to determine just how prevalent they will be in the coming years, we too expect that the virtual participants in the virtual currency ecosystem will increasingly intersect with the banking industry.Which of the following is the meaning of the phrase ‘fraught with dangers’ as mentioned in the passage?
...

MCQ-> Read the following passage carefully and answer the questions given at the end.Passage 4Public sector banks (PSBs) are pulling back on credit disbursement to lower rated companies, as they keep a closer watch on using their own scarce capital and the banking regulator heightens its scrutiny on loans being sanctioned. Bankers say the Reserve Bank of India has started strictly monitoring how banks are utilizing their capital. Any big-ticket loan to lower rated companies is being questioned. Almost all large public sector banks that reported their first quarter results so far have showed a contraction in credit disbursal on a year-to-date basis, as most banks have shifted to a strategy of lending largely to government-owned "Navratna" companies and highly rated private sector companies. On a sequential basis too, banks have grown their loan book at an anaemic rate.To be sure, in the first quarter, loan demand is not quite robust. However, in the first quarter last year, banks had healthier loan growth on a sequential basis than this year. The country's largest lender State Bank of India grew its loan book at only 1.21% quarter-on-quarter. Meanwhile, Bank of Baroda and Punjab National Bank shrank their loan book by 1.97% and 0.66% respectively in the first quarter on a sequential basis.Last year, State Bank of India had seen sequential loan growth of 3.37%, while Bank of Baroda had seen a smaller contraction of 0.22%. Punjab National Bank had seen a growth of 0.46% in loan book between the January-March and April-June quarters last year. On a year-to-date basis, SBI's credit growth fell more than 2%, Bank of Baroda's credit growth contracted 4.71% and Bank of India's credit growth shrank about 3%. SBI chief Arundhati Bhattacharya said the bank's year-to-date credit growth fell as the bank focused on ‘A’ rated customers. About 90% of the loans in the quarter were given to high-rated companies. "Part of this was a conscious decision and part of it is because we actually did not get good fresh proposals in the quarter," Bhattacharya said.According to bankers, while part of the credit contraction is due to the economic slowdown, capital constraints and reluctance to take on excessive risk has also played a role. "Most of the PSU banks are facing pressure on capital adequacy. It is challenging to maintain 9% core capital adequacy. The pressure on monitoring capital adequacy and maintaining capital buffer is so strict that you cannot grow aggressively," said Rupa Rege Nitsure, chief economist at Bank of Baroda.Nitsure said capital conservation pressures will substantially cut down "irrational expansion of loans" in some smaller banks, which used to grow at a rate much higher than the industry average. The companies coming to banks, in turn, will have to make themselves more creditworthy for banks to lend. "The conservation of capital is going to inculcate a lot of discipline in both banks and borrowers," she said.For every loan that a bank disburses, some amount of money is required to be set aside as provision. Lower the credit rating of the company, riskier the loan is perceived to be. Thus, the bank is required to set aside more capital for a lower rated company than what it otherwise would do for a higher rated client. New international accounting norms, known as Basel III norms, require banks to maintain higher capital and higher liquidity. They also require a bank to set aside "buffer" capital to meet contingencies. As per the norms, a bank's total capital adequacy ratio should be 12% at any time, in which tier-I, or the core capital, should be at 9%. Capital adequacy is calculated by dividing total capital by risk-weighted assets. If the loans have been given to lower rated companies, risk weight goes up and capital adequacy falls.According to bankers, all loan decisions are now being assessed on the basis of the capital that needs to be set aside as provision against the loan and as a result, loans to lower rated companies are being avoided. According to a senior banker with a public sector bank, the capital adequacy situation is so precarious in some banks that if the risk weight increases a few basis points, the proposal gets cancelled. The banker did not wish to be named. One basis point is one hundredth of a percentage point. Bankers add that the Reserve Bank of India has also started strictly monitoring how banks are utilising their capital. Any big-ticket loan to lower rated companies is being questioned.In this scenario, banks are looking for safe bets, even if it means that profitability is being compromised. "About 25% of our loans this quarter was given to Navratna companies, who pay at base rate. This resulted in contraction of our net interest margin (NIM)," said Bank of India chairperson V.R. Iyer, while discussing the bank's first quarter results with the media. Bank of India's NIM, or the difference between yields on advances and cost of deposits, a key gauge of profitability, fell in the first quarter to 2.45% from 3.07% a year ago, as the bank focused on lending to highly rated customers.Analysts, however, say the strategy being followed by banks is short-sighted. "A high rated client will take loans at base rate and will not give any fee income to a bank. A bank will never be profitable that way. Besides, there are only so many PSU companies to chase. All banks cannot be chasing them all at a time. Fact is, the banks are badly hit by NPA and are afraid to lend now to big projects. They need capital, true, but they have become risk-averse," said a senior analyst with a local brokerage who did not wish to be named.Various estimates suggest that Indian banks would require more than Rs. 2 trillion of additional capital to have this kind of capital adequacy ratio by 2019. The central government, which owns the majority share of these banks, has been cutting down on its commitment to recapitalize the banks. In 2013-14, the government infused Rs. 14,000 crore in its banks. However, in 2014-15, the government will infuse just Rs. 11,200 crore.Which of the following statements is correct according to the passage?
...