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  9. Q55

APSC CCE 2023 · Question 55 of 163

Which of the following is/are correct about a Bad Bank? (i) A bank that is insolvent (ii) A bank that has become bankrupt (iii) A bank whose NPAs have crossed the tolerable limit (iv) A bank set up to buy bad loans and other illiquid holdings of another financial institution. Select the correct answer using the codes given below.

Indian Economy

  1. A(i) and (ii) only
  2. B(ii) and (iii) only
  3. C(iii) only
  4. D(iv) onlyCorrect

Answer: D. (iv) only

Explanation

A 'bad bank' (like India's NARCL) is an entity created to acquire stressed assets and bad loans from other financial institutions.

Source: APSC CCE Prelims 2023 GS Paper-I, official Series-A key

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