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Show a graph for supply and demand for reserves where there is discount lending. Show and explain the effect on equilibrium of raising the discount rate.
Constant
In financial terms, a fixed value that does not change over the period under consideration, often used in calculating interest and annuities.
Expected Total Return
The sum of all earnings from an investment, including capital gains and dividends, anticipated over a specific period.
Perpetual Preferred Stock
A type of preferred stock with no fixed maturity date, often providing fixed dividend payments indefinitely.
Required Return
Required return is the minimum annual percentage earned by an investment that will induce individuals or companies to put money into a particular security or project.
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