In Canada

question 118

Multiple Choice

In Canada

• A)the M1 multiplier is less than the M2 multiplier.
• B)the money multiplier increases when the desired reserve ratio increases.
• C)the money multiplier increases when the currency drain ratio increases.
• D)the M1 multiplier decreases over time.
• E)the M2 multiplier decreases over time.

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Definitions:

Direct Material Used

The raw materials that are directly included in the finished product, easily traceable to specific goods or batches of goods.

Variable Manuf. Overhead

Expenses associated with manufacturing that vary directly with the level of production output, such as materials and utilities.

Standard Variable Overhead Rate

A predetermined rate applied to estimate the variable overheads based on a specific activity base.

Standard Hours Per Unit

The estimated time required to produce one unit of a product under standard operating conditions.