Which of the Following Is True Due Primarily to the Inseparability

question 144

Multiple Choice

Which of the following is true due primarily to the inseparability of services?

• A) Customers have to rely on reassuring physical cues that indicate quality service.
• B) Service businesses cannot promise the same experience with every service encounter.
• C) A service is produced and consumed at the same time.
• D) It is impossible for service businesses to exactly match supply with demand.
• E) It is difficult for service businesses to live up to guarantees.

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Definitions:

Required Reserves

The portion of deposits that banks are required to keep on hand and cannot lend out, typically mandated by a central bank.

Total Assets

The sum of all assets owned by an entity, including cash, investments, property, and other valuables, used to assess financial health.

Excess Reserves

The capital reserves held by banks over and above the minimum required by regulators, available for lending or investing.

Required Reserves

The minimum amount of reserves that a bank must hold, as mandated by the central bank, against its deposit liabilities.