If We Observe That the Bank Rate Has Increased,we Can

question 14

Multiple Choice

If we observe that the bank rate has increased,we can conclude that the

• A)Bank of Canada has abandoned its inflation target.
• B)Government of Canada has reduced the money supply.
• C)Bank of Canada has adjusted the rate it pays on Treasury bills.
• D)Bank of Canada has implemented an expansionary monetary policy.
• E)Bank of Canada has implemented a contractionary monetary policy.

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Definitions:

Materials Price Variance

The difference between the actual cost of materials and the expected cost, multiplied by the amount of materials purchased.

Standard Price

A predetermined cost that companies use to value inventory and cost of goods sold, often used in budgeting and performance evaluation.

Actual Price

The real or market price at which an asset or service is bought or sold.

Materials Price Variance

Materials price variance is the difference between the actual cost of materials used in production and the expected (or standard) cost, indicating efficient materials purchasing.