During Its Years of Existence,the Second Bank of the United

question 6

Multiple Choice

During its years of existence,the second Bank of the United States

• A) was the depository of the funds of the national government.
• B) contributed to inflation by issuing excessive federal bank notes.
• C) limited economic growth by restricting credit and maintaining high interest rates.
• D) served as the chartering agency for state and local banks.
• E) invested most of its funds in Wall Street stocks and bonds.

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Definitions:

Direct Materials Purchases Variance

The difference between the actual cost of direct materials purchased and the expected (or standard) cost, used for budgeting and cost control purposes.

Standard Costs

Predetermined or budgeted costs for materials, labor, and overhead used for cost control and financial planning.

Materials Quantity Variance

The variance between the real amount of materials consumed in the manufacturing process and the anticipated standard amount.

Direct Materials Purchases Variance

The difference between the actual cost of direct materials purchased and the expected, or budgeted, cost.