Joe Is Reviewing Secondary Data His Company Collected About Seasonal

question 86

Multiple Choice

Joe is reviewing secondary data his company collected about seasonal variation in consumer spending.The advantages of using this data include that:

• A) it is new and can be used to project overall demand.
• B) it can be quickly accessed at a relatively low cost.
• C) it is historical data that can be used to accurately predict future trends.
• D) it has been collected for just the purpose Joe is using it for.
• E) all of these.

---

Definitions:

Money Multiplier

The mechanism by which the base money supply is expanded through the banking system's ability to lend and create deposits.

Reserve Ratio

The portion of depositors' balances that banks must have on hand as cash.

Bank Leverage

The ratio of a bank's total debt to its equity capital, indicating the extent to which bank funding is used to finance its assets.

Bank Insolvency

A condition where a financial institution's liabilities exceed its assets, rendering it incapable of meeting its obligations.