Which of the Following Statements Is True

question 5

Multiple Choice

Which of the following statements is true?

• A)In case of a liquidity crisis, depositors do not need to worry as the RBA will pay out any deficit balances.
• B)In case of a liquidity crisis, any available balances will be divided equally among depositors.
• C)In case of a liquidity crisis, any available balances will be divided proportionally to each depositor's investment.
• D)In case of a liquidity crisis, the 'first comes, first served' principle holds.

---

Definitions:

DRIP Payments

Dividend Reinvestment Plan payments, where dividends paid by a corporation are automatically reinvested to purchase more shares of the company's stock.

EOQ

Economic Order Quantity; the ideal order quantity a company should purchase to minimize its total costs related to ordering, receiving, and holding inventory.

Ordering Costs

Expenses incurred in placing and receiving orders from suppliers, including costs related to order processing and transportation.

Inventory Value

The total cost or market value of all the goods and materials held by a company intended for sale.