Secondary Reserves Are So Called Because ________

question 125

Multiple Choice

Secondary reserves are so called because ________.

• A) they can be converted into cash with low transactions costs
• B) they are not easily converted into cash, and are, therefore, of secondary importance to banking firms
• C) 50 percent of these assets count toward meeting desired reserves
• D) they rank second to bank vault cash in importance of bank holdings

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Definitions:

Production Material Needs

The quantity and type of materials required to meet production goals.

Budgeted Purchases

The anticipated expenditures on goods and materials a company plans to buy for a specific period.

Finished Goods Inventory

The completed products that are ready for sale but have not been sold yet.

Yarn

A long continuous length of interlocked fibers used in the production of textiles, knitting, crocheting, sewing, and weaving.