The Fed's Policy Tools Include

question 349

Multiple Choice

The Fed's policy tools include

• A)required reserve ratios,the discount rate,open market operations,and extraordinary crisis measures.
• B)holding deposits for the U.S.government,reserve requirements,and the discount rate.
• C)setting regulations for lending standards and extraordinary crisis measures.
• D)supervision of the banking system and buying and selling commercial banks.
• E)required reserve ratios,income tax rates,and open market operations.

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Definitions:

Actual Costs

The real costs incurred by a business, including all expenses related to production, operation, and maintenance.

Standard Costs

Predetermined costs for materials, labor, and overhead used in budgeting and assessing performance by comparing them to actual costs.

Inventory Decrease

A reduction in the quantity of goods held in stock by a business.

Performance Measures

are metrics used to evaluate the efficiency, effectiveness, and productivity of an operation, employee, or process.