It should be possible to avoid intensifying crises when there are weak financial sectors if

Question

Quizplus · Accepted Answer

Banks paying closer attention to the maturity match between their debts and assets can help prevent situations where they cannot meet their obligations in the short term, which can lead to a financial crisis. This is because the banks will be better able to manage liquidity risks and avoid overstretched balance sheets. The other options presented may also contribute to financial stability, but focusing on maturity matching is a key strategy for avoiding crises stemming from weak financial sectors.

It Should Be Possible to Avoid Intensifying Crises When There