The Federal Funds Rate Is the Interest Rate on Short-Term

question 84

Multiple Choice

The federal funds rate is the interest rate on short-term loans made by:

• A)the Federal Reserve to commercial banks.
• B)the federal government to the Federal Reserve.
• C)the Federal Reserve to the federal government.
• D)commercial banks to other commercial banks.

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Definitions:

Direct Materials

The raw materials directly used in the production of goods.

Direct Labor-Hours

The total time workers spend producing a product or service, directly involved in the manufacturing or production process.

Variable Overhead

Costs that fluctuate with the level of production output, such as utilities for a manufacturing plant, which increase as production increases.

Direct Materials

Raw materials that can be directly associated with the production of specific goods or services and are a major component of total manufacturing costs.