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    Question

    As per the Financial Stability Report, which trend is

    contributing to underlying vulnerabilities in global financial markets?
    A Reduction in equities Correct Answer Incorrect Answer
    B Declining role of NBFIs Correct Answer Incorrect Answer
    C Sharp rise in risk assets Correct Answer Incorrect Answer
    D Weakening interconnectedness between banks and NBFIs Correct Answer Incorrect Answer
    E Decline in stablecoins Correct Answer Incorrect Answer

    Solution

    The report states that although global financial markets appear strong, underlying vulnerabilities persist due to a sharp rise in equities and other risk assets, the expanding role of Non-Bank Financial Intermediaries (NBFIs), and rapid growth of stablecoins.

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