Which of the Following Is a Reason for Diminishing Liquidity

question 47

Multiple Choice

Which of the following is a reason for diminishing liquidity in modern corporations?

• A) Just-in-time inventory programs.
• B) Better utilization of cash via computers.
• C) Increased use of point-of-sale terminals.
• D) All of the options are reasons for diminishing liquidity.

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Definitions:

Pegged Exchange Rate

A currency system where a country's currency value is fixed or linked to another currency or a basket of currencies.

Fixed Exchange-rate System

A currency system where the value of a country's currency is pegged to another currency, a basket of currencies, or a commodity like gold.

Central Bank

An institution that manages a country’s currency, money supply, and interest rates, often overseeing the commercial banking system of their country or monetary union.