When the Fed Buys Securities

question 364

Multiple Choice

When the Fed buys securities

• A)it is conducting open market operations.
• B)it wants to increase the money supply.
• C)it offers a high price on those securities which drives down interest rates.
• D)All of the choices are true when the Fed buys securities.

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Definitions:

Direct Labor Rate Variance

The difference between the actual cost of direct labor and the expected (or standard) cost, indicating discrepancies in workforce expenses.

Direct Labor Efficiency Variance

A measure of the difference between the actual hours worked and the standard hours expected for the production accomplished.

Favorable

A term used in budgeting and accounting to describe a financial result or variance that is better than expected or budgeted.

Flexible Budget

A budget that adjusts or scales according to changes in the volume of activity, revenue, or other factors.