MC33. What is the potential impact of CBDCs on financial stability?
A. CBDCs could increase financial stability by reducing the risk of bank runs.
B. CBDCs could decrease financial stability by making it easier for individuals and companies to transfer funds out of the banking system.
C. CBDCs are unlikely to have any significant impact on financial stability.
D. CBDCs could increase the risk of financial instability by introducing new sources of systemic risk.
Answer:A
MC33. What is the potential impact of CBDCs on financial stability?
A. CBDCs could increase financial stability by reducing the risk of bank runs. B. CBDCs could decrease financial stability by making it easier for individuals and companies to transfer funds out of the banking system. C. CBDCs are unlikely to have any significant impact on financial stability. D. CBDCs could increase the risk of financial instability by introducing new sources of systemic risk.
Explanation: CBDCs could potentially increase financial stability by providing a safe and secure alternative to physical cash and reducing the risk of bank runs. Additionally, CBDCs could help to reduce counterparty risk and improve the efficiency of financial markets.