A Supplier Certification Program

question 9

Multiple Choice

A supplier certification program:

• A) adds cost to the supplier, but provides few benefits to the supplier.
• B) may enable the buyer and seller to lower costs and improve quality.
• C) may improve quality, but at best will not raise costs.
• D) always improves quality, but usually at a higher purchase price.
• E) typically cost more to implement than the value of the quality improvement.

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Definitions:

Quantitative Easing

A monetary policy where a central bank buys securities in the open market to increase the money supply and encourage lending and investment.

Reserve Requirement

A regulation set by central banks that determines the minimum amount of reserves that banks must hold against deposits.

Gross National Income

The total domestic and foreign output claimed by residents of a country, consisting of GDP plus factor incomes earned by foreign residents, minus income earned in the domestic economy by nonresidents.

Net National Income

The total income of a nation after adding all payments from abroad and subtracting all payments to abroad, including depreciation.