Monetary Policy

question 187

Multiple Choice

Monetary policy

• A)must be described in terms of interest-rate targets.
• B)must be described in terms of money-supply targets.
• C)can be described either in terms of the money supply or in terms of the interest rate.
• D)cannot be accurately described in terms of the interest rate or in terms of the money supply.

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Definitions:

Markup

The amount added to the cost of goods to cover expenses and generate profit, usually expressed as a percentage of the cost.

Physical Inventory

The process of counting and verifying the actual quantities of merchandise or goods in stock, typically performed at the end of an accounting period.

Cost Flow Assumption

The method by which a company values and moves its costs (such as FIFO, LIFO) to determine the cost of goods sold and ending inventory valuation.

Net Income

The total earnings of a company after subtracting all expenses, taxes, and costs from total revenue; also known as net profit.