The Money Supply in Macroland Is Currently 2,500,bank Reserves Are

question 42

Multiple Choice

The money supply in Macroland is currently 2,500,bank reserves are 200,currency held by the public is 500,and the banks' desired reserve-deposit ratio is 10%.Assuming that the values of currency held by the public and the desired reserve-deposit ratio do not change,if the Central Bank of Macroland wishes to increase the money supply to 3,000,then it should conduct an open-market _________ government bonds to/from the public.

• A) purchase of 50
• B) purchase of 250
• C) purchase of 500
• D) sale of 50
• E) sale of 500

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Definitions:

Standard Costing System

A cost accounting method that assigns expected costs to products in order to estimate the cost of production and help with budget planning.

Direct Labour Hours

The total hours worked directly on a specific job or task by employees, often used to allocate labor costs to products or services.

Variances

Differences between planned, budgeted, or standard costs and actual costs in business operations.

Cost Of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including materials, labor, and manufacturing overhead.