Question

the required reserve ratio is sometimes used as a tool in .. policy, influencing the country's borrowing and interest rates by changing the amount of funds available for banks to make loans with

Answer 1

The Economic Order Quantity (EOQ) is the number of units that a company should add to inventory with each order to minimize the total costs of inventory—such as holding costs, order costs, and shortage costs. Since the model assumes instantaneous replenishment, there are no inventory shortages or associated costs.