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The Financial Stability Board (FSB) is an international body that monitors and makes recommendations about the global financial system. Consider the following about it.
1. It was established by G-20 as the successor to the Financial Stability Forum (FSF).
2. It has been made a member organ of the International Monetary and Financial Committee (IMFC).
Which of the above is/are correct?
  • a)
    1 only
  • b)
    2 only
  • c)
    Both 1 and 2
  • d)
    None
Correct answer is option 'A'. Can you explain this answer?
Verified Answer
The Financial Stability Board (FSB) is an international bodythat monit...
Justification: Statement 1: To strengthen the surveillance of financial
markets, the G20 leaders decided in April 2009 to expand the membership
of the former Financial Stability Forum (FSF) and renamed it the Financial
Stability Board (FSB). The new membership includes all G20 countries,
Hong Kong SAR, Singapore, Spain, and the European Commission.
Statement 2: FSB will report any possible threats to the stability of the
global financial system to the G20 finance ministers, the IMF and central
bank governors.
The FSF was made an observer of the IMFC in 1999. FSB is not a member
organ of the IMFC.
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The Financial Stability Board (FSB) is an international bodythat monitors and makes recommendations about the global financialsystem. Consider the following about it.1. It was established by G-20 as the successor to the FinancialStability Forum (FSF).2. It has been made a member organ of the International Monetaryand Financial Committee (IMFC).Which of the above is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)NoneCorrect answer is option 'A'. Can you explain this answer?
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