When Lucile Visited a Stationery Store to Buy Tape,she Noticed

question 66

Multiple Choice

When Lucile visited a stationery store to buy tape,she noticed that each roll of tape was priced at $1.99.In fact,most of the prices at the store were set a few dollars or a few cents below a round number.This indicates that the manager of the store is using a(n) _____.

• A)odd-even pricing strategy
• B)bundle pricing strategy
• C)prestige pricing strategy
• D)premium pricing strategy

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Definitions:

Required Reserve Ratio

The fraction of deposits that a bank is required by regulation to hold in reserve, not loaning them out, ensuring banks can meet their depositor's demands.

Required Reserve

The minimum amount of funds that a bank must hold in reserve against deposits made by customers, as mandated by central banking authorities.

Excess Reserves

The amount of reserves that a bank holds beyond the required minimum, which can potentially be lent out to create new money.

Excess Reserves

The funds that banks hold over and above the required reserve ratio set by the central bank, which can be loaned out or invested.