Currency in Circulation Plus Bank Reserves

question 325

Multiple Choice

Currency in circulation plus bank reserves:

• A)forms the monetary base.
• B)is equal to M1 plus M2.
• C)equals the required reserves for a bank.
• D)equals the excess reserves for a bank.

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Definitions:

Labor Rate Variance

A measure of the difference between the actual cost of labor and the budgeted or standard cost.

Direct Labor

Direct labor costs are the wages and benefits paid to employees who are directly involved in producing goods or providing services.

Standard Labor Cost

The predetermined cost of the labor necessary to produce a unit of output, based on expected productivity rates.

Produced

Refers to items that have been completed and are ready for sale or distribution, typically finished goods in a manufacturing context.