Question

Financial stability is:

Answer 1

Financial stability is when one is able to supply themselves their needs and some wants. For example, the person is able to supply food, shelter, and clothing for themselves. However, they are also able to supply their smartphone bill as well.

Answer 2

Financial stability is a state in which the financial system, i.e. the key financialmarkets and the financial institutional system is resistant to economic shocks and is fit to smoothly fulfil its basic functions: the intermediation of financial funds, management of risks and the arrangement of payments.