Which of the Following Is a Tool the Federal Reserve

question 197

Multiple Choice

Which of the following is a tool the Federal Reserve System can use to regulate the quantity of money?
I.changing the discount rate
Ii.conducting open market operations
Iii.changing the required reserve ratio

• A)i only
• B)ii only
• C)ii and iii
• D)i and ii
• E)i,ii,and iii

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Definitions:

Revenue Price Variance

The difference between the actual revenue generated by selling a product at its current price and the expected revenue at a predetermined price.

Direct Materials Price Variance

Direct materials price variance is the difference between the actual cost of materials and the standard cost, multiplied by the quantity of materials purchased.

Standard Price

A predetermined cost that management expects to pay under normal conditions for a specific quantity of goods or services.

Unfavorable Staff Time Variance

A discrepancy where the actual hours worked by employees exceed the planned or standard hours, typically leading to higher costs.