A Retailer's Inventory Would Normally Include

question 273

Multiple Choice

A retailer's inventory would normally include:

• A)goods partially worked on but not yet fully completed.
• B)direct materials in stock and awaiting use in the manufacturing process.
• C)goods fully completed by the firm but not yet sold.
• D)products in their original form intended to be sold without changing their basic form.

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Definitions:

Recession

A period of temporary economic decline during which trade and industrial activities are reduced, generally identified by a fall in GDP in two successive quarters.

TARP Bailout

The Troubled Asset Relief Program, a U.S. government program created in 2008 to purchase toxic assets and inject capital into banks to stabilize the financial system.

Deposit Multiplier

The ratio of the amount of deposits created by banks to the amount of new reserves.

Reserve Ratio

The fraction of depositors' balances banks must have on hand as cash, a regulatory requirement designed to ensure banks' liquidity and stability.