In 2008, the Fed Acquired a Fourth Tool of Monetary

question 349

Multiple Choice

In 2008, the Fed acquired a fourth tool of monetary policy, which is the

• A) open-market operation.
• B) discount rate.
• C) paying of interest on excess reserves held at Fed banks.
• D) reserve ratio.

Understand the role and types of responsibility centres in managing costs and performance.

Acknowledge the significance of inventory accounts and their management in manufacturing.

Comprehend how cost behaviour impacts decision making at various levels of the business.

Recognize the shift towards non-financial information in modern management accounting.

---

Definitions:

Organic Fertilizer

A natural substance used to enrich the soil with nutrients, derived from plant or animal matter without synthetic additives.

Sales Commissions

Payments made to sales employees or agents, typically calculated as a percentage of the sales they generate.

Net Operating Income

A financial metric that represents the total earnings generated from a company's operations, excluding non-operating income and expenses like interest and taxes.

Cedar Shingles

Thin, tapered pieces of cedar wood used as roofing material, known for their durability, natural resistance to rot and decay, and aesthetic appeal.