If the Interest Rate Is Above the Fed's Target,the Fed

question 35

Multiple Choice

If the interest rate is above the Fed's target,the Fed should

• A)buy bonds to increase bank reserves.
• B)buy bonds to decrease bank reserves.
• C)sell bonds to increase bank reserves.
• D)sell bonds to decrease bank reserves.

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Definitions:

Direct Materials Purchases Variance

The difference between the actual cost of direct materials purchased and the expected (budgeted) cost of these materials.

Standard Direct Labor-Hours

The estimated amount of labor time required to produce one unit of output, based on established standards.

Variable Overhead Rate Variance

The difference between the actual and the standard cost of variable overheads in a production process.

Direct Materials Purchases Variance

The difference between the actual cost of direct materials purchased and the expected (or standard) cost, used for budgeting and cost control purposes.