If a Person Selling Bonds to the Fed Cashes the Fed's

question 179

Multiple Choice

If a person selling bonds to the Fed cashes the Fed's check,then reserves ________ and currency in circulation ________,everything else held constant.

• A) remain unchanged; declines
• B) remain unchanged; increases
• C) decline; remains unchanged
• D) increase; remains unchanged

---

Definitions:

Unit Product Cost

The total cost associated with manufacturing a single unit of product, including direct materials, labor, and overhead expenses.

Predetermined Overhead Rate

A rate used to apply overhead costs to products, calculated before the accounting period begins based on estimated costs and activity levels.

Manufacturing Overhead

refers to all the indirect costs associated with the production process, excluding direct materials and direct labor.

Direct Labor-Hours

The total time worked by employees directly involved in manufacturing a product or providing a service.