In the Early 1990s, the Fed Was Most Interested in Which

question 85

Multiple Choice

In the early 1990s, the Fed was most interested in which aggregate for an indicator of the level of economic activity?

• A)U.S. Savings Bonds
• B)domestic nonfinancial debt (DNFD)
• C)money market mutual funds
• D)money market deposit accounts

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Definitions:

Disbursement Basis

An accounting method in which expenditures and revenues are recorded when cash is actually disbursed or received, rather than when they are incurred.

Accrual Basis

An accounting method where income and expenses are recorded when they are earned or incurred, regardless of when the cash transaction happens.

GAAP Constraint

Guidelines that restrict or limit certain accounting practices under Generally Accepted Accounting Principles, to ensure fairness, consistency, and accuracy in financial reporting.

Disbursement Basis

Accounting method where expenses are recorded when cash is paid out, rather than when incurred.