In a Periodic Review System,if the Average Demand Increases by 100%,the

question 67

Multiple Choice

In a periodic review system,if the average demand increases by 100%,the safety stock level is:

• A) increased by 200%.
• B) increased by 100%.
• C) decreased by 50%.
• D) increased by 40%.

---

Definitions:

Debt Securities

Financial instruments that represent a loan made by an investor to a borrower, typically including terms for interest payments and the return of principal at maturity.

Fixed Maturity

A term related to fixed-income investments indicating the set date when the principal amount of the investment is paid back to the investor.

Equity Securities

Financial instruments representing ownership interest in a company, such as stocks, which provide shareholders with claims on assets and earnings.

Notes and Bonds

Financial instruments representing a loan made by an investor to a borrower, typically corporate or governmental, where bonds are longer-term than notes.