Regulation Q

question 65

Multiple Choice

Regulation Q

• A)prohibited interstate banking.
• B)placed ceilings on allowable interest rates on time and savings deposits.
• C)required all banks to hold reserves against demand deposits.
• D)broadened the basis on which the Fed could make discount loans.

---

Definitions:

Operating Leverage

The degree to which a company uses fixed operating costs, whereby a small change in sales significantly affects profitability.

Operating Leverage

A measure of how sensitive a company's operating income is to a change in its sales volume, emphasizing the impact of fixed costs.

EBIT

Earnings Before Interest and Taxes represents a metric for gauging a firm's profit, specifically excluding expenses related to interest and taxes.

Sales Revenue

The total amount of money generated from the sale of goods or services before any expenses are subtracted.