Which of the Following Would NOT Be Used by a Central

question 14

Multiple Choice

Which of the following would NOT be used by a central bank to influence interest rates in the economy?

• A) Selling government bonds
• B) Buying shares
• C) Setting reserve requirements
• D) Changing the refinancing rate

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Definitions:

Variable Overhead Efficiency Variance

The difference between the actual variable overhead costs incurred and the expected (or standard) costs, based on efficient usage of resources.

Actual Labour Hours

The real amount of labor time spent by employees on the production of goods or provision of services.

Standard Labour Rate

The pre-determined cost per unit of labor time, used in calculating labor expenses in manufacturing.