first look at the starting value then approximately affect the ending value
Fed can <u>purchase</u> government bonds or it can <u>extend</u> discount loans to commercial banks.
The Fed creates cash via buying securities on the open marketplace and including the corresponding funds to the financial institution reserves of commercial banks. Banks then grow the money deliver in flow even extra by using making loans to consumers and agencies.
One manner to increase a bank's amount of required reserves is to: increase deposits. One reason why banks are required to deposit a minimal quantity of reserves on the Federal Reserve is so that: the Federal Reserve can manipulate the capacity of banks to lend cash to others.
The term commercial bank refers to a financial group that accepts deposits, gives checking account offerings, makes various loans, and gives fundamental financial products like certificates of deposit (CDs) and financial savings accounts to individuals and small organizations.
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Answer:
b. 15%
Explanation:
IRR is the discount rate that equates the after tax cash flows from an investment to the amount invested.
IRR can be calculated using a financial calculator:
Cash flow in year 0 = $-1,400,000
Cash flow each year for 3 years = $613,228
IRR = 15%
To find the IRR using a financial calacutor:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. After inputting all the cash flows, press the IRR button and then press the compute button.
I hope my answer helps you
