world_organizations hard Fill in the Blank

IOSCO's principles for financial benchmark administrators emphasize governance, methodology transparency, and accountability to ensure benchmarks like interest rates or commodity prices are robust, reliable, and resistant to _____.

  1. volatility
  2. manipulation
  3. inflation
  4. deflation

Answer: manipulation

Following scandals like LIBOR, IOSCO developed principles to restore trust in benchmarks. They require clear governance, conflict management, input data quality controls, and oversight mechanisms to prevent manipulation, ensuring benchmarks accurately reflect market conditions for fair pricing and risk management.

Topic International Organization of Securities Commissions
Exam Relevance Banking, UPSC, SSC
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