The correct answer is 1, 2 and 3. Explanation & Key Takeaways: • The Financial Stability Board (FSB) is an international body that monitors and makes recommendations about the global financial system. Hence, statement 1 is correct. • It was established after the G20 London summit in April 2009 as a successor to the Financial Stability Forum (FSF). India, being a member of the G20 grouping, played an active role in its establishment. Hence, statement 3 is correct. • The Board includes all G20 major economies, FSF members, and the European Commission. Hosted and funded by the Bank for International Settlements, the board is based in Basel, Switzerland. • The FSB promotes international financial stability; it does so by coordinating national financial authorities and international standard-setting bodies as they work toward developing strong regulatory, supervisory, and other financial sector policies. It fosters a level playing field by encouraging the coherent implementation of these policies across sectors and jurisdictions. • The FSB, working through its members, seeks to strengthen financial systems and increase the stability of international financial markets. • The FSB’s decisions are not legally binding on its members – instead, the organization operates by moral suasion and peer pressure, to set internationally agreed policies and minimum standards that its members commit to implementing at the national level. Hence, statement 2 is correct.