In Order to Maintain Stable Prices, What Must the Central

question 162

Multiple Choice

In order to maintain stable prices, what must the central bank do?

• A) maintain low interest rates
• B) keep unemployment low
• C) tightly control the money supply
• D) sell indexed bonds

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Definitions:

Supply Policies

Guidelines and rules set by an organization to govern its procurement activities and relationships with suppliers.

Purchasing Consortia

Groups of businesses that come together to aggregate their purchasing volume in order to negotiate better prices and terms from suppliers.

Confidentiality

The requirement to keep certain information private, not disclosing it to unauthorized individuals or parties.

Supply Strategy

A plan for managing the procurement of goods and services to meet organizational needs effectively.