________ Are Temporary Price Reductions to Stimulate Sales or Lower

question 8

Multiple Choice

________ are temporary price reductions to stimulate sales or lower prices to encourage certain behaviors such as paying with cash.

• A) Promotions
• B) Discounts
• C) Auctions
• D) Brokerages
• E) Allowances

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Definitions:

Federal Funds Market

A financial market that allows banks to borrow and lend excess reserves to one another, usually overnight, at an interest rate called the federal funds rate.

Short-Term Loans

Short-term loans are borrowing options designed to be repaid within a short period, typically less than a year, used by individuals or businesses for immediate financial needs.

Excess Reserves

The amount of reserves that a bank holds in excess of the minimum reserve requirements set by central banking authorities.

Required Reserves

The minimum amount of funds that a bank must hold in reserve against deposits, as mandated by a central banking authority.