For Most of the Fed's History, the Fed: 

question 45

Multiple Choice

 For most of the Fed's history, the Fed: ?

• A) lent reserves at an interest rate below the target federal funds rate.?
• B) found banks would borrow from the Fed far more often than they would borrow in the federal funds market.?
• C) was very lenient in making discount loans.?
• D) tied the discount rate to the rate on Treasury securities.

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Definitions:

Work in Process

Inventory items that are in the production process but are not yet completed goods.

Predetermined Overhead Rate

A rate calculated before a period begins by dividing estimated manufacturing overhead costs by an estimated allocation base, used to allocate overhead costs to products.

Direct Labor-Hours

The total hours worked by employees who are directly involved in the manufacturing process or production of goods.

Manufacturing Overhead

All indirect costs associated with manufacturing, excluding direct materials and direct labor.