If the Fed Engages in Quantitative Easing,it Has Likely

question 247

Multiple Choice

If the Fed engages in quantitative easing,it has likely

• A)decreased the federal funds rate to almost zero by buying large sums of securities.
• B)increased the discount rate to prevent inflation.
• C)decreased the discount rate by selling its own securities.
• D)increased the federal funds rate by selling private securities.
• E)started paying interest on required reserves.

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Definitions:

Physical Inventory Count

A physical inventory count is the process of manually counting all merchandise or stock in a business to verify records and manage inventory levels.

Cost Of Inventory

The total cost incurred to acquire, produce, and place inventory items available for sale, including purchase price, shipping, handling, and storage.

Cost Of Goods Sold

An expense representing the total cost of materials and labor required to produce goods that have been sold in a given period.

Inventory

Assets in the form of materials, work-in-progress, or finished goods held by a company to be sold in the ordinary course of business.