In Order to Combat a Recession,the Fed Will ________ the Federal

question 205

Multiple Choice

In order to combat a recession,the Fed will ________ the federal funds rate thereby ________ the quantity of money.

• A) raise; increase
• B) lower; increase
• C) raise; decrease
• D) lower; decrease

Distinguish between direct and indirect methods for determining cash provided by operating activities.

Identify cash inflows and outflows associated with financing activities.

Understand the treatment of transactions involving the sale and purchase of equipment and their impact on cash flows.

Comprehend the effects of issuing and repaying debt on a statement of cash flows.