Economy
2016
Basic Economic Terms
International Organizations

‘European Stability Mechanism’, sometimes seen in the news, is an

B.agency of EU that provides financial assistance to eurozone countries
A.agency created by EU to deal with the impact of millions of refugees arriving from Middle East
C.agency of EU to deal with all the bilateral and multilateral agreements on trade
D.agency of EU to deal with the conflicts arising among the member countries

Correct Answer: Option B

The European Stability Mechanism (ESM) is a European Union agency.

Its primary function is to provide financial assistance, typically in the form of loans, to eurozone countries facing economic difficulties or to provide new capital to banks that are in distress.

Hence, option b is the correct answer.

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