All of the following are examples of monetary policy except:

a. Open market operations.

b. Discount rate.

c. Excess Reserves.

d. Prime Lending Rate.

Which statement regarding financial leverage is most accurate?

a. The variation in ROE and EPS is identical to the variation in EBIT if the firm is unleveraged.

b. The variation in ROE and EPS is always greater than the variation in EBIT if the firm is leveraged.

c. Financial risk is the additional variation in ROE and EPS arising from the use of debt.

d. All of the above.