If Currency Held by the Public Equals $100 Billion, Reserves

question 87

Multiple Choice

If currency held by the public equals $100 billion, reserves held by banks equal $50 billion, and bank deposits equal $500 billion, then the money supply equals:

• A) $100 billion.
• B) $150 billion.
• C) $600 billion.
• D) $650 billion.

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Definitions:

Direct Labor Hour

A measure of the labor directly spent on manufacturing a product, often used as a basis for allocating labor costs to products.

Direct Materials Price Variance

The difference between the actual cost of materials used in production and the expected (standard) cost.

Direct Materials

Raw materials that are consumed in the production process and can be directly traced to the end product.

Total Variable Overhead Variance

The difference between the expected and actual costs of variable overheads in a manufacturing or production process.