What Happens When the Overnight Rate Is Increased

question 6

Multiple Choice

What happens when the overnight rate is increased?

• A) there is more money for banks to lend
• B) there is an increase in the overall money supply
• C) there is increased economic activity
• D) there is less money for banks to lend

---

Definitions:

Cost of Goods Sold

The immediate expenses related to the manufacturing of products that a company sells.

Work in Process Inventory

Work in process inventory includes goods partially completed in the production process, sitting between raw materials and finished goods.

Predetermined Overhead Rate

An estimated overhead rate used to allocate manufacturing overhead costs to products.

Direct Labor Cost

The total cost of wages, benefits, and other compensation for workers directly involved in the production of goods or services.