Changes in Net Worth and Liquidity May Significantly Affect the Volume

question 6

Multiple Choice

Changes in net worth and liquidity may significantly affect the volume of lending and economic activity according to the

• A) interest rate channel.
• B) balance sheet channel.
• C) money channel.
• D) bank lending channel.

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Definitions:

Safety Inventory

Additional inventory kept to protect against variability in demand or supply, ensuring that stockouts are minimized.

Cycle Service Level

A measure of a company's ability to deliver products to customers within the committed time frame, often used as an indication of inventory management effectiveness.

Fill Rate

The percentage of customer demand that is met without backorders or stockouts, reflecting a company's ability to satisfy orders with available inventory.

Customer Fill Rate

A measure of the ability of a supply chain to deliver the requested product in the quantity and time agreed upon by the customer.