Which of the Following Is an Action of Central Banks

question 19

Multiple Choice

Which of the following is an action of central banks and governments to lessen the severity of a banking crisis?

• A)maturity transformation
• B)relaxing bank capital requirements
• C)acting as a lender of last resort
• D)opening a liquidity trap

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Definitions:

Equivalent Unit

A concept used in process costing that represents the amount of work done on incomplete units, expressed in terms of fully completed units.

Weighted-Average Method

An inventory costing method that calculates the cost of ending inventory and the cost of goods sold based on the average cost of all inventory units.

Process Costing System

An accounting method used to assign costs to units of production in industries where the production process is continuous.

Ending Work In Process

The balance of unfinished goods at the end of an accounting period, which includes material, labor, and overhead costs incurred.