Assuming Each Policy Is Performed with the Same Magnitude,which of the Following

question 54

Multiple Choice

Assuming each policy is performed with the same magnitude,which of the following would be the most restrictive monetary policy action on the part of the Federal Reserve?

• A)Sell government securities,raise reserve requirements,and lower the discount rate
• B)Buy government securities,raise reserve requirements,and raise the discount rate
• C)Sell government securities,lower reserve requirements,and raise the discount rate
• D)Sell government securities,raise reserve requirements,and raise the discount rate

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Definitions:

Operating Cycle

The duration of time it takes for a company to purchase inventory, sell products, and collect cash from customers.

Average Collection Period

The average number of days it takes for a company to receive payments owed by its customers, indicating the effectiveness of its credit and collection policies.

Inventory Turnover

A figure representing the frequency at which a business's stock is both sold and refilled over an assigned period, showing the adeptness of inventory administration.

Accounts Receivable Turnover

A financial metric that measures how efficiently a company collects payments from its customers by dividing total sales by average accounts receivable.