Which of the Following Measures Did the Fed Take During

question 143

Multiple Choice

Which of the following measures did the Fed take during the uncertain days following the terrorist attacks of September 11,2001?

• A)The Fed tightened regulations in the financial markets.
• B)The Fed increased the discount rate.
• C)The Fed bought all the government securities up for sale.
• D)The Fed increased the reserve requirement ratio.
• E)The Fed demanded interest on the bank reserves held at the Fed.

Comprehend the importance of maintaining minimum cash balances and the implications of not meeting these requirements.

Understand the preparation and components of a cash budget.

Identify factors excluding cash payments in budgeting such as depreciation expense.

Understand the purpose and components of capital expenditure budgets.

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Definitions:

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A financial document that reports a company's revenues, expenses, and net income over a specific period.

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The date which marks the end of the first quarter in the calendar year for many financial and academic institutions.

Accounting Equation

The fundamental principle of accounting that states assets equal liabilities plus owner's equity, providing the basis for double-entry bookkeeping.

Electric Bill

A monthly statement that quantifies and charges for electricity consumption.