Phase IFoundation
Background
Overview
UPSC examines the stability of the Indian economy, the impact of global and domestic factors on financial markets, and the regulatory measures taken to mitigate risks. Understanding market volatility is crucial for analyzing economic health and policy responses.
Financial market volatility refers to the rapid and unpredictable fluctuations in asset prices, such as stocks, bonds, and commodities, over a period. It is a measure of the dispersion of returns for a given security or market index, often indicating uncertainty and risk in the economic environment.