Identify and Describe Two Competitive Advantages Small Businesses Offer

question 153

Essay

Identify and describe two competitive advantages small businesses offer?

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Definitions:

Excess Reserves

Excess reserves are the capital reserves held by banks beyond the required minimum, often placed with central banks, earning interest.

Money Supply

The total amount of monetary assets available in an economy at a specific time, which includes cash, coins, and balances held in checking and savings accounts.

Time Deposits

Time deposits are bank deposits with a fixed term or maturity date, where the depositor agrees not to withdraw the funds until that date, typically earning a higher rate of interest.

Demand Deposits

Bank accounts that allow the account holder to withdraw funds without prior notice, such as checking accounts.