The discount rate is the interest rate the fed charges on loans of reserves to banks. the federal funds rate is the interest rate banks charge for overnight loans of reserves to other banks.

which of the following statements about the discount rate and the federal funds rate are true? check all that apply.

usually, banks borrow from the federal funds market rather than the discount window.

if the federal funds rate is higher than the discount rate, banks may borrow from the discount window.

if the fed wants to expand the money supply, it can raise the discount rate.

a higher discount rate discourages banks from borrowing reserves and making loans.

Speedy auto repairs uses a job-order costing system. the company’s direct materials consist of replacement parts installed in customer vehicles, and its direct labor consists of the mechanics’ hourly wages. speedy’s overhead costs include various items, such as the shop manager’s salary, depreciation of equipment, utilities, insurance, and magazine subscriptions and refreshments for the waiting room. the company applies all of its overhead costs to jobs based on direct labor-hours. at the beginning of the year, it made the following estimates: direct labor-hours required to support estimated output 20,000 fixed overhead cost $ 350,000 variable overhead cost per direct labor-hour $ 1.00 required: 1. compute the predetermined overhead rate. 2. during the year, mr. wilkes brought in his vehicle to replace his brakes, spark plugs, and tires. the following information was available with respect to his job: direct materials $ 590 direct labor cost $ 109 direct labor-hours used 6