A Just-In-Time Inventory Management System Saves Money and Requires Less

question 5

True/False

A just-in-time inventory management system saves money and requires less storage space by using smaller amounts of materials that arrive just when they are needed.

---

Definitions:

Interest Rate Risk

The risk that changes in interest rates will negatively affect the value of an investment, especially those with fixed interest rates.

Coupon

The interest rate stated on a bond when it's issued, which represents the annual interest payment made to bondholders.

Payable Semiannually

This term indicates that a payment, often in the context of bond interest or dividends, is made twice a year.

Yield To Maturity

The total return anticipated on a bond if the bond is held until it matures, including both interest payments and capital gains.