European Bank Recapitalization

What is the primary issue faced by Drexciya that the European Central Bank aims to address?

• Interest rate problem

• Liquidity problem

• Inflation problem

• Solvency problem

How does the ECB help Drexciya with its liquidity issue?

• By lowering interest rates

• By issuing new currency

• By replacing its funding with ECB's own funding

• By buying its dodgy assets

What remains unresolved even after the ECB's intervention?

• Liquidity problem

• Currency devaluation

• Solvency problem

• Interest rate problem

What role does the European Financial Stability Fund (EFSF) play in the recapitalization plan?

• Addressing liquidity issues

• Issuing new currency

• Addressing solvency issues

• Setting interest rates

What financial instrument is mentioned as a potential solution for the solvency problem?

• Government bonds

• Eurobonds

• Corporate bonds

• Municipal bonds