Daily Quiz – 05.10.2026

1. Prolonged periods of financial stability may encourage greater risk-taking by financial institutions, businesses and investors, allowing vulnerabilities to accumulate within the financial system.
2. The transmission of financial shocks can occur through lending relationships, payment systems, technology providers and common exposures, making interconnectedness relevant to the assessment of systemic risk.

III. Financial innovation involving technologies such as artificial intelligence and tokenisation can improve financial efficiency, but its benefits depend upon maintaining institutional safeguards and financial integrity.

Which of the following inferences can be drawn from the above statements?

1. Financial stability may contain the seeds of future instability if prolonged stability leads to excessive risk-taking.
2. Systemic risk assessment requires attention to channels through which disturbances can propagate across different components of the financial system.
3. Technological innovation in finance need not be inconsistent with financial stability, provided that institutional safeguards evolve alongside such innovation.

Select the answer using the code given below:

1. The proposed removal of GST-specific arrest powers is intended, among other objectives, to distinguish routine tax administration from criminal enforcement and improve taxpayer confidence.
2. Under the existing CGST framework, arrest in specified cases requires the Commissioner to have reasons to believe that an offence has been committed, with such reasons supported by evidence and recorded in writing.

III. The proposed removal of GST-specific arrest provisions would imply that deliberate tax evasion involving fraud would cease to attract criminal prosecution under the Indian legal framework.

Which of the following inferences can be drawn from the above statements?

1. The proposed reform seeks to reduce the use of criminal enforcement as an instrument in ordinary tax-administration disputes without necessarily eliminating action against deliberate fraud.
2. Commissioner-level safeguards in the existing framework indicate that GST arrest powers were subject to procedural conditions rather than being an unrestricted enforcement power.
3. Removal of GST-specific arrest provisions would necessarily result in the complete decriminalisation of deliberate tax evasion.

Select the answer using the code given below:

1. The Netherlands is bordered by Germany to the east and Belgium to the south.
2. The IJsselmeer is the largest freshwater lake in the Netherlands.
3. The Rhine, Meuse and Scheldt are among the major rivers flowing through the Netherlands.

Which of the statements given above is/are correct?