The term 'Financial Stability' as an objective of central banks refers to:
A. Only growth maximisation
B. Only exchange rate stability
C. Only price stability
D. Stability of the financial system and prevention of systemic risks
Answer: Option D
Solution (By JKSSB Mock Tests)
Financial stability involves the resilience of the financial system to shocks and the smooth functioning of financial intermediation without systemic disruptions.
Explanation:
Price discrimination (charging different prices to different consumers for the same product) is typically possible under monopoly where the firm has market power and can segment markets.
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