Which of the following measures did the European Central Bank take to prevent financial crises in individual countries from collapsing the Eurozone?
A) reducing taxes in member countries
B) making loans to troubled countries
C) raising interest rates
D) selling government securities

Question

Quizplus · Accepted Answer

The European Central Bank made loans to troubled countries, such as Greece, in order to prevent their financial crises from spreading to other countries and collapsing the Eurozone. This measure was known as the "bailout" and was aimed at stabilizing the economies of struggling countries. Reducing taxes (A) and raising interest rates (C) would have the opposite effect, potentially worsening the economic situation. Selling government securities (D) is a tool used by central banks to manage the money supply, but it is not directly related to preventing financial crises in individual countries.

Which of the Following Measures Did the European Central Bank