Describe and Explain What Was Done During the During the Financial

question 37

Essay

Describe and explain what was done during the during the financial crisis of 2007-2008 in the United States (sometimes referred to as Extend and Pretend).

---

Definitions:

Present Value

Present Value is the current worth of a future sum of money or stream of cash flows, given a specified rate of return.

Compound Interest

Calculating interest by considering the base amount of a deposit or loan and adding the interest accrued across preceding periods.

Capital Investment

involves the procurement of funds or physical assets with the anticipation of generating future returns or growth in value.

Net Cash Flows

The difference between a company’s total cash inflows and outflows over a specific period, indicating its ability to generate cash.