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Which of the following events is least likely to cause sudden market volatility?

easy Q2 of 15
Financial Awareness - Risk, Stability & Emerging Finance
Which of the following events is least likely to cause sudden market volatility?
AStable inflation data over several months
BRelease of quarterly corporate earnings
CAnnouncement of a surprise interest rate hike
DGeopolitical tensions between countries
Step-by-Step Solution
  1. Step 1: Understand the question

    The question asks which event is least likely to cause sudden market volatility.
  2. Step 2: Analyze options

    Surprise interest rate hikes, earnings releases, and geopolitical tensions often cause volatility. Stable inflation data indicates economic stability, reducing sudden market fluctuations.
  3. Final Answer:

    Stable inflation data over several months → Option A
  4. Quick Check:

    Least cause of volatility = Stable inflation data ✅
Quick Trick: Stable data reduces market uncertainty.
Common Mistakes:
  • Assuming all economic data releases cause volatility.
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