The Theory of Bureaucratic Behavior When Applied to the Fed

question 72

Multiple Choice

The theory of bureaucratic behavior when applied to the Fed helps to explain why the Fed

• A) is supportive of congressional attempts to limit the central bank's autonomy.
• B) is secretive about the conduct of future monetary policy.
• C) sought less control over banks in the 1980s.
• D) is willing to take on powerful groups that may threaten its autonomy.

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Definitions:

Current Assets

Resources anticipated to be turned into cash, sold, or used up within a year or throughout the typical operating cycle of the company.

Net Sales

Total sales revenue minus returns, allowances, and discounts.

Gross Profit

Gross profit refers to the difference between revenue and the cost of goods sold before administrative, overhead, and other expenses.

Receivables Turnover Ratio

A financial metric that measures a company's effectiveness in extending credit and collecting debts, calculated by dividing net credit sales by the average accounts receivable.