Because More Intermediaries Are Using Computer Systems to Control Inventory

question 117

Multiple Choice

Because more intermediaries are using computer systems to control inventory levels,

• A) they can assess the profitability of each product.
• B) new-task buying is increasing.
• C) they are carrying larger inventories.
• D) negotiated contract buying is increasing.
• E) All of these alternatives are occurring.

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Definitions:

Interest Rates

The proportion of interest a borrower is charged for loaned funds.

Bank Credit

The total amount of borrowing capacity available to an individual or entity from a bank or other financial institutions, enabling the borrower to make purchases or investments.

Reserve Requirement

The minimum fraction of customer deposits and notes that each commercial bank must hold as reserves rather than lending out, set by the central bank.

Demand Deposits

Bank accounts from which money can be withdrawn at any time without any notice to the institution.