Refer to the Given Figure Where the Nominal Interest Rate

question 77

Multiple Choice

Refer to the given figure where the nominal interest rate equals 6 percent and the money supply equals 600. If the Federal Reserve wants to set the nominal interest rate at 4 percent, it must conduct open market ________ to set the money supply at ________.

• A)purchases; 200
• B)sales; 200
• C)purchases; 800
• D)sales; 800

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Definitions:

Internal Control

Processes and procedures implemented by a company to ensure the integrity of financial and accounting information, promote accountability, and prevent fraud.

Separation Of Duties

is a preventive security measure in organizations to reduce the risk of fraud or error, requiring more than one person to complete key tasks.

Voucher System

A control mechanism in accounting that uses vouchers to record transactions and ensure expenditures are properly authorized.

Voucher System

A method in accounting used to authorize and document transactions, ensuring payments are made for authorized purchases only.