In an Effort to Maintain Price Stability, It Is Expected

question 62

Multiple Choice

In an effort to maintain price stability, it is expected that the European Central Bank will raise interest rates in the future. Which of the following is the most likely effect of such an action on short- and long-term interest rates in Europe?

• A) Long-term interest rates will be about the same as short-term interest rates.
• B) Long-term interest rates will tend to be higher than short-term interest rates.
• C) Both long- and short-term interest rates would be expected to fall sharply.
• D) No relative change in short- and long-term interest rates could be predicted.

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Definitions:

Service Risks

Service risks are potential threats or vulnerabilities that can affect the delivery or quality of services offered by a business or organization.

Organization's Culture

The shared values, beliefs, and practices that influence how members of the organization interact and work together.

Outsourcing

The practice of hiring third parties to conduct services or create goods that were typically performed in-house, as a strategy to reduce costs, access specialized skills, or improve focus on core business activities.

Employee Morale Risks

Potential threats to the overall mood, satisfaction, and motivation of a company's workforce.