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Which of the Following Is a Tool Used by the Fed

question 69

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Which of the following is a tool used by the Fed to control the money supply?


Definitions:

Degree of Operating Leverage

A financial metric that measures the sensitivity of a company's operating income to its sales volume.

Margin of Safety

The amount by which sales can drop before reaching the break-even point, typically expressed as a percentage of current sales.

Sales

The total revenue generated from goods or services sold by a company.

Net Operating Income

Revenue derived from the principal activities of a business before interest and taxes are subtracted.

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