Which of the Following Is an Example of an Expansionary

question 176

Multiple Choice

Which of the following is an example of an expansionary monetary policy?

• A) a reduction in government purchases of goods and services
• B) an increase in the discount rate
• C) an open market sale of U.S. government securities
• D) a reduction in the required reserve ratio
• E) a tax cut

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Definitions:

Post-acquisition Equity

The value of the equity interest in a subsidiary held by a parent company after adjusting for the cost of acquisition and other factors.

Consolidation Worksheet Entries

Journal entries used in the preparation of consolidated financial statements which adjust, eliminate, and combine account balances from separate financial statements of parent and subsidiary entities.

Consolidated Financial Statements

Financial statements that aggregate the financial position, results of operations, and cash flows of a parent company and its subsidiaries.

Business Combination Valuation Reserve

A reserve account used in accounting for the difference between the fair value of net assets of the acquired business and the purchase price.