Which of the Following Shows a Combination of Costs That

question 32

Multiple Choice

Which of the following shows a combination of costs that would normally be fixed and variable costs for a production plant?

• A) Costs of building and costs of equipment
• B) Land purchase costs and costs of equipment
• C) Cost of building and costs of materials
• D) Land purchase costs and general manager's salary

---

Definitions:

Required Reserves

The minimum amount of funds that a bank must hold in reserve against deposits, as mandated by central banking regulations.

Money Supply

Refers to the total amount of money—cash, coins, and balances held in checking and savings accounts—available within an economy at a specific time.

Deposits

Are funds placed into an account at a financial institution, creating a balance that can earn interest or be withdrawn for use.

Reserve Ratio

The fraction of depositors' balances that banks have to hold in reserve and not lend out.