Based on Your Reading of the Examples in the Chapter

question 45

Multiple Choice

Based on your reading of the examples in the chapter, what would be the best use of RFID for a business?

• A) logging transactions
• B) managing the supply chain
• C) lowering network costs
• D) enabling client communication

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Definitions:

Cash Equivalent

Short-term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.

Compensating Balance

A minimum bank account balance that a borrower agrees to maintain as a condition for obtaining a loan, often used to offset the bank's credit risk.

Legal Restrictions

Regulations or limitations prescribed by law that affect the actions of individuals, businesses, or governments.

Compensating Balance

A compensating balance is a minimum account balance that a borrower agrees to maintain in an account with a lender as part of a loan agreement.