The More Funds That the Federal Reserve Makes Available for Banks

question 67

Multiple Choice

The more funds that the Federal Reserve makes available for banks to borrow through the Term Auction Facility, the _____ the monetary base and the _____ the money supply.

• A) smaller; smaller
• B) smaller; greater
• C) greater; greater
• D) greater; smaller

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Definitions:

Variable Manufacturing Overhead

Overhead expenses in manufacturing that change in proportion to the amount of production activity.

Raw Materials

The basic materials from which products are manufactured or made.

Quantity Variance

The difference between actual quantity of material or labor used in production and the expected quantity, often leading to cost variations.

Direct Labor-Hours

The total hours worked by employees directly involved in the manufacturing process, often used as a basis for allocating labor and overhead costs.