The Main Difference Between a Final Consumer and an Intermediate

question 10

Multiple Choice

The main difference between a final consumer and an intermediate consumer is that the final consumer:

• A) pays cash.
• B) uses products himself.
• C) purchases more than intermediate consumers.
• D) is not as flexible as an intermediate consumer.
• E) does not have any bargaining power.

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Definitions:

Reserve Requirement

The minimum amount of reserves a bank must hold against deposits, set by central banks to ensure bank liquidity and stability.

Deposits

Funds placed in a bank account that can be withdrawn by the account holder, typically used for safekeeping or to earn interest.

Money Supply

The total amount of money in circulation or in existence within a country, including cash and deposits.

Reserve Requirement

The minimum amount of funds that a bank must hold in reserve against deposits made by customers.