If the Fed Is Generous in Its Granting of Discount

question 3

Multiple Choice

If the Fed is generous in its granting of discount loans during a crisis,

• A)the result will likely be a contraction of the money supply.
• B)risk taking by banks and corporations may be encouraged.
• C)the discount rate will be bid up as the demand for loans exceeds the supply.
• D)market interest rates will rise sharply.

Know the various types of costs associated with manufacturing (direct materials, direct labor, factory overhead).

Distinguish between prime costs, conversion costs, and period costs.

Understand the classification and reporting of inventory costs in manufacturing businesses.

Identify characteristics of useful managerial accounting reports.

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Definitions:

Technology

Business application of knowledge based on scientific discoveries, inventions, and innovations.

U.S. Productivity

measures the efficiency of production in the United States, typically gauged by the output of goods and services per unit of labor input.

Gross Domestic Product

The total monetary or market value of all the finished goods and services produced within a country's borders in a specific time period.

Nation's Total Productivity

A measure of the efficiency of production within a country, accounting for the output of goods and services relative to input resources.