The term 'Financial Stability' as an objective of central banks refers to:
A. Stability of the financial system and prevention of systemic risks
B. Only price stability
C. Only exchange rate stability
D. Only growth maximisation
Answer: Option A
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.
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