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Hunter Went to the Hardware Store Looking for Gloves to Wear

question 34

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Hunter went to the hardware store looking for gloves to wear while refinishing a table,he bought one pair because that was all he needed.But when the hardware store purchased the gloves,it purchased a case containing 100 pairs of identical gloves.Which logistical function did the hardware store perform for Hunter and its other customers?


Definitions:

Reserve Ratio

The fraction of deposits that a bank is required to hold in reserve and not loan out, as mandated by central banking authorities.

Percent

A term used to describe one hundredth of a whole; a way to express fractions, amounts, or changes in quantities in terms of hundredths.

Reserve Requirement

A regulation that sets the minimum amount of reserves a bank must hold against deposits, used as a tool to control banking stability and money supply.

Deposits

Money placed into a financial institution for safekeeping, which can earn interest over time.

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