Day: May 29, 2022

What happens when the discount rate increases? Increasing the discount rate gives depository institutions less incentive to borrow, thus reducing their reserves and lending activity. What is the discount rate and what does it affect? The discount rate is a financial term that can have two meanings. In banks, it is the interest rate that …

Which of the following affects the present value of an​ investment? Read More »

What are examples of equity? Equity is ownership of an asset after all of the liabilities associated with the asset have been paid. For example, if you own a $25,000 car but owe $10,000 for that vehicle, the car represents $15,000 in equity. It is the value or interest of the youngest class of investors …

What is a fixed income investment Read More »