Which of the Following Represents One of the New Monetary

question 155

Multiple Choice

Which of the following represents one of the new monetary tools that the Fed has developed as a result of the recent financial crisis?

• A)In the last two and a half decades,the Fed has become much less transparent about its actions.
• B)The Fed is now responsible for monetary and fiscal policy.
• C)The Fed has started buying private securities and making loans to private firms.
• D)The Fed has become part of the Department of Treasury.
• E)None of these

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Definitions:

Purchase Discounts Lost

Purchase discounts lost refer to the additional amount paid by a buyer for failing to take advantage of the early payment discount offered by a supplier.

Net Method

An accounting technique used to record purchases or sales of goods after deducting any discounts offered at the time of purchase or sale.

Discounts Lost

Charges incurred from not taking advantage of early payment discounts offered by suppliers.

Net Method

An accounting method for recording purchases where the purchase price includes a cash discount for early payment.