What is the relationship between the Fed's reserve requirement and the money supply?
What will be an ideal response?
Answer: All depository institutions (those that accept deposits from customers) are required to hold a portion of those deposits in reserve. The institutions may keep the reserve as cash in their own vaults or in an account at a regional Federal Reserve bank. By changing the reserve percentage, the Fed allows these institutions to lend out more or less of their deposited amounts, thereby affecting the size of the money supply. In contrast to the frequency of open-market operations, however, the Fed does not change the reserve ratio frequently because doing so is costly to implement and a small change can have a drastic effect.
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Indicate whether the statement is true or false
Which of the following would most likely be a batch-level cost?
A) Factory rent B) Quality control C) Energy costs for factory machinery D) Research and development costs for a new product line
Which one of the following option is a program that involves giving preference in hiring or promotion to qualified female or minority employees??
A) ?Contract compliance program B) ?Labor management program C) ?Social welfare program D) ?Affirmative action program
Quality control is best defined as an organization's efforts to
A. let employees know that they will be penalized for any complaints related to the quality of their goods or services. B. produce goods that are of the same quality as its competitors' goods. C. control all whistleblowing activities so as to maintain the positive image of the organization. D. prevent or correct defects in its goods or services or to improve them in some way.