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    Question

    According to the RBI's December 2024 Financial Stability

    Report, what are the key risks to financial stability?
    A Stretched asset valuations, high public debt, geopolitical conflicts Correct Answer Incorrect Answer
    B Low capital buffers, declining profitability Correct Answer Incorrect Answer
    C High inflation, low consumption Correct Answer Incorrect Answer
    D Lack of government spending, declining GDP Correct Answer Incorrect Answer
    E Weakening liquidity in foreign exchange markets Correct Answer Incorrect Answer

    Solution

    The RBI's Financial Stability Report highlighted that medium-term risks to financial stability include stretched asset valuations, high public debt, geopolitical conflicts, and risks from emerging technologies. These risks could pose challenges to global financial stability.

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