In Recent Years,much of the Emphasis of Fed Policy Has

question 32

Multiple Choice

In recent years,much of the emphasis of Fed policy has been on

• A)controlling short-term interest rates
• B)implementing a system of price controls
• C)regulating bank managers
• D)controlling the money supply
• E)making changes in the international financial markets

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Definitions:

Direct Materials

Raw materials that are directly traceable to the manufacturing of a product and constitute a significant portion of the costs of goods produced.

Prime Costs

The total cost of direct materials and direct labor incurred in the production of goods.

Conversion Costs

The combination of labor costs and overhead costs that are incurred to convert raw materials into finished goods.

Direct Labor Cost

The total cost of wages paid to workers directly involved in the production of goods or services, excluding benefits and overtime.