Demographic Changes That Increase the Number of People in the Lending

question 72

Multiple Choice

Demographic changes that increase the number of people in the lending phase (for example, age 50 to 75) and reduce the number in the borrowing phase (under age 50) , will

• A) increase the demand for loanable funds relative to supply and lead to lower interest rates.
• B) reduce the demand for loanable funds relative to supply and lead to higher interest rates.
• C) increase the supply of loanable funds relative to demand and lead to lower interest rates.
• D) decrease the supply of loanable funds relative to demand and lead to lower interest rates.

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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.