Which of the Following Is an Advantage for a Retailer

question 116

Multiple Choice

Which of the following is an advantage for a retailer who is using e-catalogs?

• A) Inventory in the store does not have to match the catalog.
• B) The cost to maintain and access the catalog is minimal.
• C) Specialty products reach a better defined target market.
• D) Several virtual storefronts can be represented in the catalog.
• E) The e-catalog is not dependent on search engines such as Yahoo! or Google.

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Definitions:

Reserve Ratio

The fraction of deposits that banks are required to keep on hand as reserves, aimed at ensuring liquidity and controlling the money supply.

Discount Rate

The interest rate charged by central banks on loans they offer to commercial banks or the rate used in discounted cash flow analysis to determine the present value of future cash flows.

Money Supply

The full tally of available monetary resources in an economy at a specified time, comprising cash, coins, and checking and savings account funds.

Reserve Requirement

Central bank regulations that set the minimum amount of reserves that must be held by a commercial bank.