Many Agree That Macro Prudential Tools Are the Right Instruments

question 12

Multiple Choice

Many agree that macro prudential tools are the right instruments to deal with bubbles, credit booms, or dangerous behaviour in the financial system. These are:

• A) rules that regulate trading activities in the financial markets.
• B) rules that are aimed directly at employees and firms.
• C) rules that regulate trading activities in the foreign exchange markets.
• D) rules that protect the rights of consumers.
• E) rules that are aimed directly at borrowers, lenders, and financial institutions.

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Definitions:

Direct Labor-Hours

The total hours worked directly on manufacturing a product or providing a service.

Direct Materials Cost

The cost of raw materials that can be directly attributed to the production of specific goods or services.

Activity-Based Costing

A costing method that assigns overhead and indirect costs to specific activities, providing a more accurate reflection of costs.

Direct Labor-Hours

Direct labor-hours are the total hours worked by employees directly involved in the manufacturing process.