Which One of the Following Rates Is the Rate That

question 104

Multiple Choice

Which one of the following rates is the rate that banks charge each other for overnight loans of $1 million or more?

• A)institutional
• B)financial overnight
• C)Federal funds
• D)monetary
• E)daily

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Definitions:

Direct Labor

Labor costs directly associated with the manufacture of specific goods or the delivery of specific services, representing wage expenses for personnel involved in production.

Absorption Costing

An accounting strategy where the price of manufacturing a product is determined by adding up expenses on direct materials, direct labor, and every overhead cost, be it variable or fixed.

Markup

The extra charge applied to the acquisition cost of items intended to offset operating costs and secure a profit, which defines their market price.

Return On Investment

A performance measure used to evaluate the efficiency or profitability of an investment, calculated by dividing the net profit from the investment by its cost.