Before the Federal Reserve System Was Created, a Large Part

question 153

Multiple Choice

Before the Federal Reserve System was created, a large part of the reserves of commercial banks was

• A) in the form of state and federal government bonds.
• B) deposited with the United States Treasury.
• C) held as deposits with large city banks.
• D) held as cash in their vaults.

---

Definitions:

Revenue Variance

The difference between actual revenue and budgeted or forecasted revenue, indicating the effectiveness of business strategies.

Variable Cost Variances

Differences between the actual and expected or budgeted variable costs in the production process.

Denominator Activity

The activity level used to divide the total overhead in calculating the predetermined overhead rate, commonly representing capacity or expected usage.

Volume Variance

Volume variance measures the difference between the expected production volume and the actual production volume, impacting the budget and operational efficiency.