If Many People Were to Suddenly Deposit into Their Checking

question 156

Multiple Choice

If many people were to suddenly deposit into their checking accounts large sums of cash previously held in their homes and/or wallets, and there were no offsetting actions by the Fed or change in institutional policies, this would

• A) decrease the M1 money supply but increase the M2 money supply.
• B) increase the excess reserves of banks and expand the money supply if these reserves are used to make additional loans.
• C) reduce the excess reserves of banks and indirectly decrease the M1 money supply.
• D) reduce the excess reserves of banks and indirectly increase the M1 money supply.

Understand key laws and regulations affecting pricing practices, including the Consumer Goods Pricing Act, the Sherman Act, the Federal Trade Commission Act, and the Robinson-Patman Act.

Comprehend the concepts and applications of markup pricing and its standard practices in various business scenarios.

Identify and explain deceptive pricing strategies, including bait and switch, and understand their legal and ethical implications.

Describe the practice of yield management pricing and its relevance in maximizing revenue in different industries.

---

Definitions:

Power

The capacity or ability to direct or influence the behavior of others or the course of events.

Variable Overhead Efficiency Variance

The difference between the actual variable overhead costs incurred and the expected costs based on the standard costs for the actual production volume.

Variable Manufacturing Overhead

Indirect production costs that vary with the level of production output, such as utilities or materials handling expenses.

Last Month

A reference to the immediate month preceding the current one.