FINANCIAL RESCUE Meaning and
Definition
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Financial rescue refers to the act or process of providing assistance or support to individuals, organizations, or economies facing severe financial distress or impending collapse. It typically involves implementing various measures aimed at preventing or mitigating financial crises, stabilizing markets, and restoring economic stability.
Financial rescues are often undertaken by governments, central banks, or international institutions in response to situations where the failure of financial institutions, systemic economic shocks, or excessive risks jeopardize the overall well-being of an economy or financial system. The primary objective of a financial rescue is to prevent significant economic downturns, protect investors and depositors, and ensure financial stability.
A financial rescue can take various forms depending on the specific circumstances. It may include injecting capital into struggling banks, providing liquidity support to financial markets, guaranteeing deposits, recapitalizing troubled industries, implementing regulatory reforms, or arranging bailouts for failing entities. The goal is to restore confidence and stimulate economic growth by addressing the root causes of the crisis, such as excessive debt, liquidity shortages, or mismanagement.
While financial rescues often involve substantial financial resources and government intervention, they are typically seen as necessary measures to prevent a complete collapse of the financial system, which could have far-reaching consequences for the broader economy. However, they can also be subject to criticism due to the potential moral hazard they create by rewarding risky behavior and suppressing market discipline.
Common Misspellings for FINANCIAL RESCUE
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Etymology of FINANCIAL RESCUE
The etymology of the word "financial rescue" can be broken down as follows:
1. Financial: The word "financial" originates from the late Middle English word "financielle" or "financiælle" which derived from the Old French word "financier", meaning "to pay ransom" or "to settle a debt". It further derives from the Middle Latin word "financiare" meaning "to pay a fine" or "redeem a pledge". The root of this word is believed to be the Late Latin word "finis", meaning "end" or "payment".
2. Rescue: The word "rescue" comes from the Old French word "rescourre", which is a combination of the prefix "re-" meaning "back" and the verb "escondre" meaning "hide".
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