What Was the Purpose of the Federal Reserve Act

question 75

Multiple Choice

What was the purpose of the Federal Reserve Act?

• A) to end the Great Depression, which had begun during the end of Roosevelt's last term as president
• B) to nationalize the banking system so that all banks became public institutions rather than private corporations
• C) to promote the gold standard in such a way that the banking system of the United States was identical to that of the Civil War
• D) to require every state-chartered bank to become a member of the Federal Reserve system and regulate them closely
• E) to adjust the nation's currency supply and create a national banking system to promote growth and ensure the stability of member banks

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Definitions:

Materials Price Variance

The difference between the actual cost of materials and the expected cost multiplied by the quantity of materials used.

Unfavorable

A term used to describe a variance or difference that negatively impacts financial performance.

Labor Rate Variance

The difference between the expected cost of labor at standard rates and the actual cost of labor incurred.

Raw Materials Quantity Variance

The difference between the expected amount of raw materials required for production and the actual amount used, evaluated in terms of cost.