Inventory Days' Supply (IDS)is Calculated as Average Total Inventory

question 27

Multiple Choice

Inventory days' supply (IDS) is calculated as Average total inventory / _____.

• A) Transportation cost
• B) Average sold inventory
• C) Total annual sales of goods
• D) Cost of goods sold per day

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Definitions:

Required Reserve Ratios

The fraction of deposits that regulators require a bank to hold in reserve and not lend out, to ensure bank liquidity.

Financial Markets

Banks and other financial institutions that facilitate the flow of funds from savers to borrowers.

Discount Rate

The interest rate set by central banks that they charge commercial banks for loans and advances, influencing monetary conditions and economic indicators like inflation and investment.

Government Securities

Financial instruments issued by a government to borrow money from investors, often with a promise to pay periodic interest and repay the principal at maturity.