To Lower Interest Rates on Residential Mortgages to Stimulate the Housing

question 21

Multiple Choice

To lower interest rates on residential mortgages to stimulate the housing market,the Fed extended its open market operations to purchase

• A)mortgage-backed securities.
• B)commercial papers.
• C)long-term Treasuries.
• D)Treasury bills and Treasury notes.

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Definitions:

LIFO

Last In, First Out, an inventory valuation method where the most recently produced or purchased items are recorded as sold first.

Perpetual FIFO Method

An inventory costing method where goods are assumed to be sold in the order they are acquired, continuously updated to reflect inventory levels and cost of goods sold.

Inventory Flow

The movement and management of goods from procurement of raw materials to the sale of finished products to customers, including all stages of production and warehousing.

FIFO Method

A method of inventory valuation where the first items purchased or manufactured are the first ones considered sold, standing for "First In, First Out."