Which of the Following Observations Concerning the Fed's Discount Window

question 36

Multiple Choice

Which of the following observations concerning the Fed's discount window is true?

• A)The facility is provided to meet DIs' permanent liquidity needs.
• B)Four lending programs are offered through the Fed's discount window.
• C)Primary credit is available to sound depository institutions on a very short-term basis.
• D)Secondary credit is available only to depository institutions that are eligible for primary credit.

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Definitions:

Direct Labor Rate Variance

The difference between the expected cost of direct labor and the actual cost incurred, measured in financial terms.

Actual Costs

The real expenses incurred in manufacturing a product, providing a service, or running a business, as opposed to estimated or budgeted costs.

Standard Costs

Pre-determined or estimated costs used for cost control and decision-making purposes, often as a benchmark for measuring performance.

Direct Labor Rate Variance

The difference between the actual cost of labor and the expected (or standard) cost, used in budgeting and cost management.