Use the Following to Answer Questions

question 42

Multiple Choice

Use the following to answer questions
GE Transportation produces train engines for sale in countries around the world.After looking at the total market for train engines, the company found that different rail lines wanted different engines.Major rail lines in the USA and South America wanted engines to haul heavy freight.Rail lines in Sweden and Germany were interested in a cleaner, greener train engine.Rail lines operated by several Eastern European countries wanted train engines for running short distances between cities in their own country.GE Transportation is currently manufacturing its GE 4400 for heavy freight, its Hybrid Eco-Engine and its Dash 9 suited for short distances.
-Researchers at GE Transportation estimate that 1000 rail lines throughout the world will purchase some kind of train engine next year.That number represents the:

• A)company sales potential.
• B)breakdown approach.
• C)market potential.
• D)buildup approach.
• E)company sales forecast.

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Definitions:

Excess Reserves

Excess reserves are the funds that banks hold over and above the required minimum reserves mandated by central banking regulations, often stored in central banks.

Treasury Bonds

Long-term government securities issued by the U.S. Department of the Treasury. They carry a fixed interest rate and have maturities ranging from 20 to 30 years.

Money Supply

The comprehensive sum of all available financial assets within an economy at a particular time, including cash, coins, and account balances in checking and savings.

Reserve Requirement

The lowest level of reserves that financial institutions are required to maintain against deposits, determined by central banks to manage the amount of money in circulation.