Which of the Following Is a Common Potential Benefit of Outsourcing

question 36

Multiple Choice

Which of the following is a common potential benefit of outsourcing services?

• A) Increased control over the service delivery.
• B) Increased ability to focus on core competencies.
• C) Decreased need to attend to people (customers of the service) allowing greater focus on processes.
• D) Decreased need to control the quality of the service because it is outsourced.

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Definitions:

Required Reserves

The fraction of deposits that banks are obligated to hold in reserve and not lend out, as mandated by the central bank.

Reserve Requirement

The fraction of deposits that banks are required to hold in reserve and not lend out, which is used by central banks as a tool to control the money supply.

Deposits

Funds placed into an account at a banking institution for safekeeping and potential interest accrual.

Reserve Ratio

The reserve ratio is the fraction of deposits that a bank is required to hold in reserve and not lend out, set by the central bank to control the money supply.