Basic Considerations That Enter into the Selection of a Location

question 50

Multiple Choice

Basic considerations that enter into the selection of a location for a manufacturing business normally include

• A)availability of raw materials.
• B)customer accessibility.
• C)neighborhood conditions.
• D)federal income taxes.

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Definitions:

Reserve Requirement

A central bank regulation that sets the minimum fraction of customer deposits and notes that each commercial bank must hold as reserves rather than lend out.

Deposits

Funds placed into an account at a banking institution for safekeeping and possible interest accrual.

Reserves

Reserves refer to funds or other assets that banks or financial institutions hold to meet unexpected demands or regulatory requirements.

Required Reserve Ratio

A regulation set by central banks determining the minimum amount of reserves that banks must hold against deposits, affecting money supply.