Which of the Following Is the Likely Negative Consequence of Solving

question 16

Multiple Choice

Which of the following is the likely negative consequence of solving a labor shortage by hiring people without the needed skills and training them?

• A)morale of existing employees may decrease
• B)major changes of business strategy are usually required
• C)compensation costs tend to be high
• D)productivity will be low
• E)changes in technology will be required

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Definitions:

Reserve Requirement

The minimum amount of reserves a bank must hold against deposits, as mandated by central banking authorities.

Commercial Banks

Financial institutions that provide a range of services, including accepting deposits, providing loans, and offering other financial products.

Bank Failures

The occurrence when a bank is unable to meet its obligations to its depositors or other creditors because it has become insolvent or too illiquid to meet its liabilities.

Federal Reserve System

The central bank of the United States, responsible for monetary policy, financial regulation, and stability of the financial system.