A Bank Is Reserve Deficient When

question 117

Multiple Choice

A bank is reserve deficient when

• A) its reserves fall short of the level determined by the required reserve ratio.
• B) its excess reserves are greater than its required reserves.
• C) its required reserves are greater than its excess reserves.
• D) it purchases government securities from the Fed.

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Definitions:

Factory Overhead

Indirect manufacturing costs that are not tied directly to specific units of product, such as maintenance, utilities, and rent of a factory.

Direct Labor

Direct labor refers to the wages paid to workers who are directly involved in the production of goods or services, such as assembly line workers.

Direct Materials

Raw materials that can be directly attributed to the production of goods, evident in the final product.

Work In Process

Refers to the materials, labor, and overhead costs incurred for products that are in the process of being manufactured but are not yet complete.