Which of the Following Is an Action That the Fed

question 40

Multiple Choice

Which of the following is an action that the Fed uses to increase or decrease the money supply? ​

• A)buying or selling Treasury securities in the secondary market
• B)adjusting the tax rate imposed on income earned on Treasury securities
• C)adjusting the coupon rate on Treasury bonds
• D)selling Treasury securities in the primary market

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Definitions:

Standard Machine-Hours

A predetermined measure of how many hours of machine time should be used for a given level of production output.

Standard Cost System

A system that assigns predetermined costs to products and services, used for setting budgets and measuring performance.

Manufacturing Overhead

All indirect costs associated with the manufacturing process, including costs for utilities, rent, and maintenance for production facilities.

Machine-Hours

A measure of the amount of time a machine is operated, used as a basis for allocating manufacturing overhead costs to products.