When Events Occur at Discrete Points in Time

question 36

Multiple Choice

When events occur at discrete points in time

• A) a simulation clock is required.
• B) the simulation advances to the next event.
• C) the model is a discrete-event simulation.
• D) All of the alternatives are correct.

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Definitions:

Required Reserve Ratio

The fraction of deposits that banks are required by law to keep on hand as reserves or with the central bank.

Discount Rate

The interest rate charged by central banks to commercial banks for loans.

Government Securities

Financial instruments issued by a government to raise funds from investors, promising to pay back with interest, including treasury bonds, bills, and notes considered low-risk investments.

Federal Reserve Board

The governing body of the Federal Reserve System, responsible for overseeing the U.S. central banking system.