Which of the following does the Financial Policy Committee (FPC) aim to remove?

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The Financial Policy Committee (FPC) is primarily focused on maintaining financial stability and managing systemic risks within the financial system. Its role involves identifying and mitigating potential financial risks that could disrupt the economy or the financial sector. By aiming to remove or reduce financial risks, the FPC seeks to ensure that the financial system operates smoothly and can withstand economic shocks.

In contrast, investment opportunities, regulatory requirements, and consumer protections are essential aspects of a healthy financial system. Investment opportunities drive economic growth, regulatory requirements exist to provide oversight and prevent financial misconduct, and consumer protections are vital for safeguarding individuals in their financial dealings. Thus, the FPC’s goal is not to eliminate these components but rather to manage financial risks that could negatively impact them and the broader economy.

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