If This Same Foodservice Used the Par Stock System and the Par

question 13

Multiple Choice

If this same foodservice used the par stock system and the par stock level is 10 cases, how many cases should be ordered?

• A) 0
• B) 2
• C) 4
• D) 6

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Definitions:

Discount Rate

The interest rate charged to commercial banks and other depository institutions on loans they receive from their regional Federal Reserve Bank's lending facility.

Required Reserve Ratio

Percentage of deposits that must be held as vault cash and reserve deposits by all depository institutions.

Monetary Multiplier

A factor by which a change in money supply is magnified or multiplied to result in a change in national income and output.

Actual Reserves

The total amount of funds that a bank has in its vault or deposited with the central bank, available to meet withdrawal demands or regulatory requirements.