The Federal Reserve's Fedwire System Is Used Mainly to Provide

question 106

Multiple Choice

The Federal Reserve's Fedwire system is used mainly to provide:

• A) a means for foreign banks to transfer funds to U.S. banks.
• B) an inexpensive and reliable way for financial institutions to transfer funds to one another.
• C) an inexpensive way for individuals to pay their bills on-line.
• D) a means for the Treasury to collect tax payments.

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Definitions:

Customer Margin

The profit generated from a particular customer, calculated by subtracting the costs directly associated with serving them from the revenue they generate.

Activity-based Costing

A costing method that assigns costs to products or services based on the activities and resources that contribute to their creation and delivery.

Activity Cost Pools

Groupings of individual costs based on the activities that drive them, used in activity-based costing to allocate costs more accurately.

Batch Set-Up

The process of preparing equipment and systems for manufacturing a particular batch of products, involving calibration, cleaning, and test runs.