{"id":91407,"date":"2025-06-01T10:55:11","date_gmt":"2025-06-01T10:55:11","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=91407"},"modified":"2025-06-01T10:55:11","modified_gmt":"2025-06-01T10:55:11","slug":"european-stability-mechanism-sometimes-seen-in-the-news-is-an","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/european-stability-mechanism-sometimes-seen-in-the-news-is-an\/","title":{"rendered":"European Stability Mechanism’, sometimes seen in the news, is an"},"content":{"rendered":"

European Stability Mechanism’, sometimes seen in the news, is an<\/p>\n

[amp_mcq option1=”agency created by EU to deal with the impact of millions of refugees arriving from Middle East” option2=”agency of EU that provides financial assistance to eurozone countries” option3=”agency of EU to deal with all the bilateral and multilateral agreements on trade” option4=”agency of EU to deal with the conflicts arising among the member countries” correct=”option2″]<\/p>\n

\n
\n
This question was previously asked in<\/div>\n
UPSC IAS – 2016<\/div>\n<\/div>\n
Download PDF<\/a>Attempt Online<\/a><\/div>\n<\/div>\n
\nThe European Stability Mechanism (ESM) is an intergovernmental organization established by the Eurozone Member States to provide financial assistance to Eurozone countries experiencing or threatened by severe financing problems. It acts as a financial backstop for the Eurozone.
\nOption A is incorrect as the ESM’s primary role is financial stability, not refugee management.
\nOption C is incorrect as the ESM focuses on financial stability, not trade agreements.
\nOption D is incorrect as the ESM deals with financial crises, not general conflicts among member countries, although financial stress can contribute to tensions.
\n<\/section>\n
\nESM is a Eurozone agency providing financial assistance to member states in difficulty.
\n<\/section>\n
\nThe ESM was established in 2012 as a permanent successor to temporary bailout funds like the European Financial Stability Facility (EFSF) and European Financial Stabilisation Mechanism (EFSM), in response to the sovereign debt crisis in the Eurozone.
\n<\/section>\n","protected":false},"excerpt":{"rendered":"

European Stability Mechanism’, sometimes seen in the news, is an [amp_mcq option1=”agency created by EU to deal with the impact of millions of refugees arriving from Middle East” option2=”agency of EU that provides financial assistance to eurozone countries” option3=”agency of EU to deal with all the bilateral and multilateral agreements on trade” option4=”agency of EU … <\/p>\n

Detailed SolutionEuropean Stability Mechanism’, sometimes seen in the news, is an<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1092],"tags":[1098,1226],"class_list":["post-91407","post","type-post","status-publish","format-standard","hentry","category-upsc-ias","tag-1098","tag-external-sector-of-economy","no-featured-image-padding"],"yoast_head":"\nEuropean Stability Mechanism', sometimes seen in the news, is an<\/title>\n<meta name=\"description\" content=\"The European Stability Mechanism (ESM) is an intergovernmental organization established by the Eurozone Member States to provide financial assistance to Eurozone countries experiencing or threatened by severe financing problems. It acts as a financial backstop for the Eurozone. Option A is incorrect as the ESM's primary role is financial stability, not refugee management. Option C is incorrect as the ESM focuses on financial stability, not trade agreements. Option D is incorrect as the ESM deals with financial crises, not general conflicts among member countries, although financial stress can contribute to tensions. ESM is a Eurozone agency providing financial assistance to member states in difficulty.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/exam.pscnotes.com\/mcq\/european-stability-mechanism-sometimes-seen-in-the-news-is-an\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"European Stability Mechanism', sometimes seen in the news, is an\" \/>\n<meta property=\"og:description\" content=\"The European Stability Mechanism (ESM) is an intergovernmental organization established by the Eurozone Member States to provide financial assistance to Eurozone countries experiencing or threatened by severe financing problems. It acts as a financial backstop for the Eurozone. Option A is incorrect as the ESM's primary role is financial stability, not refugee management. Option C is incorrect as the ESM focuses on financial stability, not trade agreements. Option D is incorrect as the ESM deals with financial crises, not general conflicts among member countries, although financial stress can contribute to tensions. ESM is a Eurozone agency providing financial assistance to member states in difficulty.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/exam.pscnotes.com\/mcq\/european-stability-mechanism-sometimes-seen-in-the-news-is-an\/\" \/>\n<meta property=\"og:site_name\" content=\"MCQ and Quiz for Exams\" \/>\n<meta property=\"article:published_time\" content=\"2025-06-01T10:55:11+00:00\" \/>\n<meta name=\"author\" content=\"rawan239\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"rawan239\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"1 minute\" \/>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"European Stability Mechanism', sometimes seen in the news, is an","description":"The European Stability Mechanism (ESM) is an intergovernmental organization established by the Eurozone Member States to provide financial assistance to Eurozone countries experiencing or threatened by severe financing problems. It acts as a financial backstop for the Eurozone. Option A is incorrect as the ESM's primary role is financial stability, not refugee management. Option C is incorrect as the ESM focuses on financial stability, not trade agreements. Option D is incorrect as the ESM deals with financial crises, not general conflicts among member countries, although financial stress can contribute to tensions. ESM is a Eurozone agency providing financial assistance to member states in difficulty.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/exam.pscnotes.com\/mcq\/european-stability-mechanism-sometimes-seen-in-the-news-is-an\/","og_locale":"en_US","og_type":"article","og_title":"European Stability Mechanism', sometimes seen in the news, is an","og_description":"The European Stability Mechanism (ESM) is an intergovernmental organization established by the Eurozone Member States to provide financial assistance to Eurozone countries experiencing or threatened by severe financing problems. It acts as a financial backstop for the Eurozone. Option A is incorrect as the ESM's primary role is financial stability, not refugee management. Option C is incorrect as the ESM focuses on financial stability, not trade agreements. Option D is incorrect as the ESM deals with financial crises, not general conflicts among member countries, although financial stress can contribute to tensions. ESM is a Eurozone agency providing financial assistance to member states in difficulty.","og_url":"https:\/\/exam.pscnotes.com\/mcq\/european-stability-mechanism-sometimes-seen-in-the-news-is-an\/","og_site_name":"MCQ and Quiz for Exams","article_published_time":"2025-06-01T10:55:11+00:00","author":"rawan239","twitter_card":"summary_large_image","twitter_misc":{"Written by":"rawan239","Est. reading time":"1 minute"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/exam.pscnotes.com\/mcq\/european-stability-mechanism-sometimes-seen-in-the-news-is-an\/","url":"https:\/\/exam.pscnotes.com\/mcq\/european-stability-mechanism-sometimes-seen-in-the-news-is-an\/","name":"European Stability Mechanism', sometimes seen in the news, is an","isPartOf":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/#website"},"datePublished":"2025-06-01T10:55:11+00:00","dateModified":"2025-06-01T10:55:11+00:00","author":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/5807dafeb27d2ec82344d6cbd6c3d209"},"description":"The European Stability Mechanism (ESM) is an intergovernmental organization established by the Eurozone Member States to provide financial assistance to Eurozone countries experiencing or threatened by severe financing problems. It acts as a financial backstop for the Eurozone. Option A is incorrect as the ESM's primary role is financial stability, not refugee management. Option C is incorrect as the ESM focuses on financial stability, not trade agreements. Option D is incorrect as the ESM deals with financial crises, not general conflicts among member countries, although financial stress can contribute to tensions. 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