In Which Type of Pricing Do Marketers Determine Price Based

question 134

Multiple Choice

In which type of pricing do marketers determine price based on what consumers are willing to pay and then subtract desired margins to yield target costs?

• A)cost-based
• B)demand-based
• C)fixed-margin
• D)gap-determined

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Definitions:

Discount Rate

The interest rate charged by central banks to financial institutions for short-term loans, influencing monetary policy.

Reserve Requirements

Central banks' mandates on the minimum reserve levels that financial institutions need to uphold for their deposits.

Securities

Securities that signify ownership in a publicly-listed company (stock), a debt obligation to a government entity or a company (bond), or entitlements to ownership conveyed through an option.

Legal Reserves

Legal reserves are funds that financial institutions are required to hold in reserve against deposits made by their customers, as dictated by regulatory authorities.