With the Followings Is NOT One of the Reasons Why

question 48

Multiple Choice

With the followings is NOT one of the reasons why quantitative easing in and of itself will not necessarily be stimulative?

• A)Most of the resulting increase in the monetary base just flows into holdings of excess reserves.
• B)Banks just add to their holdings of excess reserves instead of making loans.
• C)The asset purchase program involves only the purchase of short-term government securities.
• D)The asset purchase program involves only the purchase of long-term government securities.

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Definitions:

Absorption Costing

A method of accounting that incorporates all costs related to manufacturing—including direct materials, direct labor, and all manufacturing overheads, whether fixed or variable—into the product's cost.

Carrying Value

The book value of an asset on a balance sheet, representing its acquisition cost minus depreciation or amortization.

Ending Inventory

The value or quantity of stock and materials a company has at the end of a financial period.

Finished Goods

Products that have completed the manufacturing process but have not yet been sold or distributed to the end customer.