A Primary Function of Banks Is To

question 14

Multiple Choice

A primary function of banks is to:

• A) expand the creation of money.
• B) spread the risks from investments to a wide range of savers.
• C) match saving flows with real investment flows in an economy.
• D) All of the above.
• E) None of the above.

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Definitions:

Materials Price Variance

The difference between the actual cost of raw materials and the expected (standard) cost, used in budgeting and financial analysis to gauge purchasing efficiency.

Direct Materials

Raw materials that are directly used in the manufacturing of a product and are easily traceable to the final product.

Direct Labor Variances

The difference between the budgeted or standard cost of direct labor for actual production and the actual cost incurred for direct labor.

Direct Labor

The work of factory employees that can be directly traced to the product being manufactured.