For Purposes of Layout Guidance

question 3

Multiple Choice

For purposes of layout guidance:

• A) service firms can be classified into a standard format.
• B) service firms are considered to be manufacturing operations with a retail customer base.
• C) service firms tend to be so diverse that it is not possible to provide standard information.
• D) service firms mostly use the free flow strategy.

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Definitions:

Gold Standard

A monetary system in which the value of a country's currency is directly linked to gold, ensuring stability and trust in the currency.

Time Deposits

A financial product provided by banks that offers a higher interest rate in exchange for keeping a specified amount of money untouched for a predetermined period.

Reserve Requirement

The minimum percentage of customer deposits and notes that a bank must hold as reserves rather than lending out, as mandated by the central bank.

Demand Deposits

Bank accounts from which deposited funds can be withdrawn at any time without any notice to the institution, typically through writing checks.