If the Reserve Ratio Is 12

question 4

Multiple Choice

If the reserve ratio is 12.5 percent,then $2,000 of additional reserves can create up to

• A)$8,000 of new money.
• B)$16,000 of new money.
• C)$32,000 of new money.
• D)None of the above is correct.

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Definitions:

E-Purchasing

The process of buying goods and services via electronic means, particularly through the internet, for businesses or personal use.

Vertical Integration

A strategy where a company expands its business operations into different steps on the same production path, such as a manufacturer owning its supplier and/or distributor.

Make-Or-Buy Analysis

An evaluation process used in business to determine whether products, parts, or components should be produced in-house or purchased from an external supplier.

Supply-Chain Strategies

Plans and methods developed to manage and improve the flow of goods and materials, information, and finances across the supply chain.