2007 General Studies, all questions
UPSC Prelims 2007 · General Studies
Question 96: Economy and Social Development
Basel II relates to which one of the following?
aInternational standard for safety in civil aviation
bMeasure against cyber crimes
cMeasure against drug abuse by sportspersons
dInternational standards for measuring the adequacy of a bank’s capital
AnswerThe answer is (d).
Basel II is the framework of the Basel Committee on Banking Supervision, issued in 2004, on how much capital banks must hold against the risks they take. It rests on three pillars: minimum capital requirements, supervisory review, and market discipline through disclosure. It has nothing to do with aviation safety, cyber crime or doping.
Why each option is right or wrong
- (a) Aviation safety standards are set by ICAO, not Basel.
- (b) Cyber-crime measures are not part of Basel II.
- (c) Doping control is handled by WADA, not Basel.
- (d) Correct: Basel II sets standards for the adequacy of bank capital.
Explanation: written by UPSC Grade, not by UPSC.
Source: UPSC, Civil Services (Preliminary) Examination 2007, General Studies. UPSC's own paper isn't online; the words are from a published compilation. The paper on upsc.gov.in.