UPSC General Studies Solved Paper - General Studies-2016

  • question_answer
    'European Stability Mechanism', sometimes se6n in the news, is an

    A) .  agency created by EU to deal with the impact of millions of refugees arriving from Middle East.

    B)  agency of EU that provides financial assistance to eurozone countries

    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: B

    Solution :

    Exp. [b] The European Stability Mechanism is the crisis resolution mechanism for countries of the euro area. The ESM issues debt instruments in order to finance loans and other forms of financial assistance to euro area member states. The decision leading to the creation of the ESM was taken by the European Council in December 2010. The euro area member states signed an intergovernmental treaty establishing the ESM on 2nd February, 2012. The ESM was inaugurated on 8th October, 2012.

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