Select the Incorrect Statement About the Planning Process

question 28

Multiple Choice

Select the incorrect statement about the planning process.

• A) The longer the time period, the more specific the plans.
• B) Planning decisions can often be subdivided into three distinct planning phases: short term, intermediate term, and long term.
• C) The nature of planning changes with the length of the time period being considered.
• D) The shorter the time period, the less general the plans.

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Definitions:

Market Rate

The prevailing interest rate available in the marketplace for loans or investments, often used as a reference for setting the rates on loans.

Government Securities

Financial instruments issued by the government to finance its expenditures, offering a return in the form of interest payments to investors.

Bank Reserves

Bank reserves are the amount of cash that banks must hold either in their vaults or on deposit with a central bank, used to back deposits and ensure liquidity.

Money Supply

The sum of all financial assets that are readily available in an economy at a given moment, including cash on hand, deposits in banks, and other easily convertible assets.