Scenario: EU Primer The Tiny but Important Country of Beaconville Has Been Invited

question 128

Multiple Choice

Scenario: EU Primer
The tiny but important country of Beaconville has been invited to join the European Union (EU) . However, there is a lot of confusion among the country's population as to exactly how the EU operates. Beaconville's Office of Public Affairs is putting together a flyer outlining some of the EU's basic operating components and needs help answering the following questions.
-The ________ drafts legislation, is responsible for managing and implementing policy, and monitors nations' implementation of, and compliance with, EU law.

• A) European Parliament
• B) European Commission
• C) Council of the European Union
• D) Court of Justice

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Definitions:

Government Bond

A type of investment where an investor loans money to a government in exchange for periodic interest payments plus the return of the bond's face value at maturity.

Moral Hazard

The situation where one party in a transaction has the opportunity to take risks because they know the other party will bear the costs.

Portfolio's Risk

Portfolio's risk is the level of uncertainty associated with the returns on a collection of assets held by an investor.

Stocks

Financial instruments representing ownership shares in a company, entitling holders to a portion of the company's profits.