Endogenous Money Is Where the Money Supply Is NOT Determined

question 19

Multiple Choice

Endogenous money is where the money supply is NOT determined by the monetary authority, but

• A)by the federal government.
• B)by the private sector.
• C)responds to conditions in the economy.
• D)the consumer.
• E)by total money demand in the economy.

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Definitions:

Lead Time

Lead time is the duration between the initiation and completion of a process, often used in reference to the time taken from ordering to receiving goods.

ROP

Refers to Reorder Point, a inventory management technique indicating the minimum level before a new order must be placed.

Continuous Review Policies

Inventory management strategies that monitor inventory levels continuously to decide when to reorder.

Safety Inventory

Additional stock kept in reserve to protect against variability in demand or supply chain disruptions.