The Inventory Carrying Costs of Airlines Is High Because They

question 142

Multiple Choice

The inventory carrying costs of airlines is high because they

• A)use a straight salary compensation plan for the large numbers of flight attendants.
• B)have high-salaried pilots and very expensive equipment.
• C)allow baggage personnel to work overtime.
• D)decrease the number of workdays per week,but increase the hours per day.
• E)use a commission compensation system for their reservationists.

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Definitions:

M1

A category of the money supply that includes all physical money, such as coins and currency, as well as demand deposits and other liquid assets held by the central bank.

M2

An indicator of the monetary base that encompasses cash, deposits in checking accounts, and readily convertible quasi-cash assets.

Money Supply

The collective amount of all financial means in an economy, considering cash, coins, and deposits in checking and savings accounts, at a specific moment.

Backed by Gold

Refers to a currency that is guaranteed by gold reserves, meaning its value is supported by the amount of gold held by the issuing authority.