Which of the Following Is an Example of an Expansionary

question 78

Multiple Choice

Which of the following is an example of an expansionary monetary policy?

• A)A reduction in government purchases of goods and services
• B)An increase in the discount rate
• C)An open market sale of U.S.government securities
• D)A reduction in the required reserve ratio
• E)A tax cut

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Definitions:

Compensation Expense

An accounting expense recognized in the books, representing the cost of the benefits provided to employees, including wages, salaries, and bonuses.

Options Pricing Model

Mathematical models used to calculate the theoretical value of options contracts based on various factors like the underlying asset's price, strike price, and time to expiration.

Performance-Based Stock Option Plan

A stock option program that ties the vesting or value of options to the achievement of specific performance targets, aligning employees' interests with corporate goals.

Compensation Expense

The total cost incurred by a company to compensate its employees, including wages, benefits, bonuses, and stock options.