Which of the Following Factors Would Reduce Inventory Carrying Costs

question 99

Multiple Choice

Which of the following factors would reduce inventory carrying costs?

• A) Ordering less inventory
• B) Higher costs of working capital
• C) Reducing ordering costs
• D) Reducing transportation costs

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Definitions:

Certificates of Deposit

Savings certificates with a fixed maturity date, specified fixed interest rate and can be issued in any denomination aside from minimum investment requirements.

Required Reserve Ratio

The fraction of deposits that regulators require a bank to hold in reserves and not lend out.

Money Supply

The sum of all financial resources in the form of cash, coins, and amounts in checking and savings accounts present within an economy at a given moment.

Government Securities

Financial instruments issued by a government to finance its expenditures, including bonds, bills, and notes.