Which of the Following Will Occur If the Fed Buys

question 33

Multiple Choice

Which of the following will occur if the Fed buys $10 million of securities from the University National Bank?

• A) The Fed will pay by increasing the University National Bank's deposit account with the Fed by $10 million.
• B) The University National Bank has $10 million more in securities.
• C) The Fed will pay by decreasing the University National Bank's deposit account with the Fed by $10 million.
• D) The University National Bank has $10 million less in excess reserves.

---

Definitions:

Underapplied

Refers to the condition where the actual manufacturing overhead costs exceed the applied manufacturing overhead costs in accounting.

Overapplied

A condition in cost accounting where the allocated overhead for a period exceeds the actual overhead expenses incurred.

Underapplied

A situation where the allocated manufacturing overhead cost is less than the actual overhead incurred, leading to a discrepancy in accounting records.

Overapplied

refers to a situation where the allocated overhead costs exceed the actual overhead costs incurred.