Answer
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Work Step by Step
If the wrench is balanced at the point below the centre of gravity of the body, the body's equilibrium will be unstable and if you slightly displace the wrench the resulting torque would overturn the wrench about its point of balance.
If the wrench is balanced at precisely at the centre of gravity, even if there's a small displacement there will be no resulting torque which will act on the body. This will be neutral or indifferent equilibrium.
If the wrench is balanced at the point which is above the centre of gravity of the wrench then after a small displacement the torque which acts on the body will always get the wrench back to its initial position, and it will oscillate so that the equilibrium is stable.
