Decisions by ________ About Their Holdings of Currency and by ________

question 100

Multiple Choice

Decisions by ________ about their holdings of currency and by ________ about their holdings of excess reserves affect the money supply.

• A)borrowers;depositors
• B)banks;depositors
• C)depositors;borrowers
• D)depositors;banks

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Definitions:

Reorder Point

The specific inventory level at which an order for more supply is initiated to replenish stock before it runs out.

Carrying Cost

The complete expense associated with maintaining stock, which encompasses costs for storage, management, decrease in value, and missed opportunities.

Order Costs

Expenses associated with placing orders for products or services, including costs involved in ordering and receiving goods.

Effective Annual Rate

The interest rate on an investment or loan that is adjusted for compounding over a specified period, often annually.