As You Prepare to Winnow the Field in Your Selection

question 79

Multiple Choice

As you prepare to winnow the field in your selection of a new system, you want a quick refresher on the difference between RFPs and RFQs. If you need an RFP, Simone will write it, and if you need an RFQ, Marny is responsible for writing that. Which of the following is true?

• A)An RFP that Simone writes is more specific than an RFQ Marny will write.
• B)When Simone is tasked with the job, you already know the specific product or service you want and you need to obtain price quotations or bids.
• C)When Marny is tasked with the job, her output can involve outright purchase or a variety of leasing options.
• D)RFPs and RFQs have very different objectives.

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Definitions:

Dividend

A portion of a company's earnings distributed to shareholders, usually in the form of cash or additional stock.

Fed Funds Rate

The interest rate at which depository institutions trade federal funds (balances held at Federal Reserve Banks) with each other overnight.

Equilibrium Levels

The point at which market supply and demand balance each other, and as a result, prices become stable.

Real Interest Rates

Measures the borrowing cost of money after adjusting for inflation, providing a clearer view of the true cost of borrowing or the true yield on an investment.