According to Strategy Highlight 4

question 32

Multiple Choice

According to Strategy Highlight 4.3,Microsoft's eventual industry dominance is largely credited to:

• A) The lucky break that Bill Gates got when starting Microsoft leveraged into a highly effective strategy.
• B) Microsoft's financial resources and market position during the time of market entry.
• C) The attractiveness of the computing industry.
• D) The ability of Microsoft to continuously innovate which is a rare resource in the computing industry.

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Definitions:

Reserve Requirement

The Reserve Requirement is a central banking regulation that sets the minimum amount of reserves each bank must hold as a proportion of its deposits, a tool used to control the money supply.

Open Market Operations

Activities by a central bank to buy or sell government securities in the open market to influence the money supply and interest rates.

Reserve Requirement

A regulation set by central banks that specifies the minimum amount of reserves a bank must hold in relation to customer deposits.

Open Market Purchase

A monetary policy tool where the central bank buys government securities from the market in order to expand the money supply.