Which of the Following Is NOT a Reason for the Bank

question 45

Multiple Choice

Which of the following is NOT a reason for the Bank of Canada and the government to keep a close watch on the housing market?

• A) the potential effect on consumption spending caused by large decreases in housing prices
• B) the financial consequences to mortgage holders if interest rates rise
• C) the financial consequences to mortgage holders if house prices suddenly drop
• D) the financial consequences to mortgage holders if house prices suddenly rise

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Definitions:

Hersey-Blanchard Situational Leadership Model

A theory that suggests the most effective leadership style varies according to the task at hand and the maturity level of the team or individual being led.

Vroom-Jago Leader-Participation Model

A decision-making framework for leaders that helps determine the level of involvement of team members in the decision-making process.

Decision-Making Method

A systematic process or approach used to make choices that resolve problems or achieve objectives.

Authority-Oriented Decision Method

A decision-making approach where decisions are made based on the authority, power, or position of individuals within an organization.