According to the ECB, what are the key characteristics of financial stability?
Understand the Problem
The question asks about the European Central Bank's (ECB) definition of financial stability, specifically concerning its key characteristics. It presents four options, each outlining different economic conditions or principles, and you need to identify which one best aligns with the ECB's perspective on what constitutes a stable financial system.
Answer
A key characteristic is the financial system's capability to withstand shocks and imbalances.
According to the ECB, a key characteristic of financial stability is the financial system's capability to withstand shocks and the unravelling of financial imbalances.
Answer for screen readers
According to the ECB, a key characteristic of financial stability is the financial system's capability to withstand shocks and the unravelling of financial imbalances.
More Information
Financial stability is crucial for maintaining confidence in the financial system and supporting sustainable economic growth.
Sources
- Financial Stability - European Central Bank - ecb.europa.eu
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