A Strategy Describes

question 111

Multiple Choice

A strategy describes

• A) Who the small business owner is and what the business is
• B) The performance desired from specific departments
• C) A plan of action that details how plans will be accomplished
• D) What the overall business should accomplish

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Definitions:

Reserve Ratio

The reserve ratio is the fraction of deposits that a bank is required to hold in reserve and not lend out, set by the central bank to control the money supply.

Money Multiplier

A concept that describes the amount of money that banks can generate with each dollar of reserves.

Percent

A mathematical term describing one hundredth of a particular quantity; a unit of proportion or rate expressed as a fraction of 100.

Reserves

Funds or assets that banks must hold either in their own vaults or on deposit with a central bank, to meet expected withdrawal demands or regulatory requirements.