An Important Routine Function of the Federal Reserve Bank Is

question 147

Multiple Choice

An important routine function of the Federal Reserve Bank is to

• A) supervise the liquidation of the assets of bankrupt state banks.
• B) help large commercial banks develop correspondent relationships with smaller commercial banks.
• C) advise commercial banks as to the most profitable ways of reinvesting profits.
• D) provide facilities by which commercial banks and thrift institutions may collect checks.

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Definitions:

Incentive

A factor, often a form of reward or penalty, that motivates individuals to perform an action or behave in a certain manner.

Fewer Suppliers

A procurement strategy where a company intentionally reduces the number of suppliers in its supply chain to improve efficiency and negotiate better terms.

Bullwhip Effect

describes the phenomenon where small fluctuations in demand at the retail level cause progressively larger fluctuations in demand at the wholesale, distributor, and manufacturer levels.

Supply Chain

A global network of organizations and activities that supplies a firm with goods and services.