Monetary Policy Tools Include

question 33

Multiple Choice

Monetary policy tools include:

• A)Income taxes and the discount rate.
• B)Open market operations and government spending.
• C)The reserve ratio and the discount rate.
• D)Open market operations and deregulation.

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Definitions:

Inventory Items

Goods and materials that a business holds for the ultimate goal of resale or production in the course of operations.

LIFO Method

An inventory valuation method that assumes the last items placed in inventory are the first ones sold; LIFO stands for Last-In, First-Out.

FIFO Method

First In, First Out, an inventory valuation method that assumes that the first items placed into inventory are the first sold.

Ending Inventory

The total value of goods that remain unsold at the end of the accounting period.