Suppose the Solution for a Transportation Model Fills 5 Cells

question 15

Multiple Choice

Suppose the solution for a transportation model fills 5 cells with quantities to be shipped.Which of the following combinations of sources and destinations would be degenerate?

• A)2 sources,4 destinations
• B)3 sources,3 destinations
• C)4 sources,2 destinations
• D)5 sources,1 destination
• E)None of the above are degenerate.

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Definitions:

Excess Reserves

The reserves held by banks in excess of what is required by regulations, which can be loaned out to generate additional income.

Required Reserves

The portion of depositors' balances that banks must have on hand as cash or as deposits with the central bank, mandated by the regulatory body.

Total Reserves

The sum of a bank's deposits at the central bank and the cash in its vault available for immediate withdrawal.

Legal Reserve

The minimum amount of funds that a bank or financial institution must hold in reserve against deposits, as mandated by regulatory authorities.