Which of the Following Results Is NOT Expected When the Federal

question 154

Multiple Choice

Which of the following results is NOT expected when the Federal Reserve lowers its federal funds target rate?

• A) increased investment
• B) increased consumption of durable goods
• C) decreased exports
• D) decreased imports

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Definitions:

Petty Cash Fund

A petty cash fund is a small amount of cash on hand used for paying expenses too small to merit writing a check.

Cash Short

A situation where the actual cash on hand is less than the expected amount, usually identified during cash reconciliation.

Journal Entry

An entry made in a journal that records a specific financial transaction, including amounts, accounts affected, and a description.

Control Procedures

These are policies and practices that organizations put in place to ensure the integrity of their financial and accounting information and to prevent fraud.