Which of the Following Statements Is True About Letter Reports

question 10

Multiple Choice

Which of the following statements is true about letter reports?

• A) They should use only the direct order.
• B) They should use only the indirect order.
• C) They use either the direct order or the indirect order.
• D) Letter reports in the indirect order always use a subject line.
• E) Letter reports in the indirect order do not open with background information.

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Definitions:

Open Market Sale

The selling of government bonds and securities in the open market to decrease the money supply.

Money Supply

The whole of economic resources in an economy, represented by cash, coins, and checking and savings accounts' balances, at a given time.

Excess Reserves

Excess reserves refer to the capital reserves held by a bank or financial institution in excess of what is required by regulations, guidelines, or central bank requirements.

Individual Bank

A financial institution that deals with consumers and businesses to offer deposit, loan, and investment services on an individual basis.