A Primary Advantage for a Depository Institution of Belonging to the Federal

question 14

Multiple Choice

A primary advantage for a depository institution of belonging to the Federal Reserve System is

• A)direct access to correspondent banking services.
• B)the lower deposit reserves required under the Federal Reserve System.
• C)direct access to the discount window of the Fed.
• D)commission less trading of U.S.government securities.
• E)decreased costs of regulatory compliance.

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Definitions:

Inventory Turnover

A measure of how frequently a company sells and replaces its stock of goods within a certain period.

Times

Often refers to a multiplicative factor or frequency of occurrences within a specified period.

Accounts Receivable Period

The average number of days it takes for a business to receive payments owed by its customers for goods or services provided on credit.

Inventory Period

The inventory period is the amount of time it takes for a company to sell through its stock of goods. This is a critical component of inventory management and cash flow analysis.