Answer the Following Questions Using the Information Below:
the Frontive

question 23

Multiple Choice

Answer the following questions using the information below:
The Frontive Company has assembled the following data pertaining to certain costs that cannot be easily identified as either fixed or variable. Frontive Company has heard about a method of measuring cost functions called the high-low method and has decided to use it in this situation.
$\begin{array}{rr}\text { Cost}&\text { Hours }\\\$ 24,700 & 5,000 \\26,000 & 5,500 \\34,000 & 7,500 \\45,370 & 10,300 \\38,000 & 9,500\end{array}$
-What is the cost function?

• A) y = $45,370 + $4.19X
• B) y = $24,700 + $4.40X
• C) y = $34,000 + $4.94X
• D) y = $5,200 + $3.90X

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Definitions:

Required Reserve Ratio

is the fraction of deposits that banks are required to keep on hand as reserves, rather than loaning them out.

Money Supply

The total amount of money available in an economy, including cash, coins, and balances held in checking and savings accounts.

Fed

The Federal Reserve System, which is the central banking system of the United States, responsible for monetary policy, banking supervision, and financial services.

Money Expansion

An increase in the total supply of money in circulation within an economy, typically achieved through central bank operations.