The Term Business Performance Management (BPM) Encompasses Three Key Components

question 65

Multiple Choice

The term business performance management (BPM) encompasses three key components, which include all of the following except:

• A) a set of integrated, closed-loop management and analytic processes, supported by technology, that address financial as well as operational activities
• B) an enterprise-wide strategy that helps to optimize local business performance
• C) tools for businesses to define strategic goals and then measure and manage performance against those goals
• D) a core set of processes, including financial and operational planning, modeling, analysis, and monitoring of key performance indicators (KPIs), linked to organizational strategy

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Definitions:

Simple Money Multiplier

A formula that determines the maximum amount of money that banks can create with a given level of reserves.

Excess Reserves

Banks' reserves that exceed the minimum required by the central bank, available for lending or investment.

Interest Rate

The price, expressed as a percentage of the principal, that a borrower must pay a lender for the use of funds.

Excess Reserves

are bank reserves held in excess of what is required by the central bank, which can be lent out to earn interest.