Examlex
In computing the net present value of an investment in equipment, the required investment and its residual value should be subtracted from the present value of all future cash inflows.
Reserve Ratio
The reserve ratio is the fraction of deposits that a bank is required to hold in reserve and not lend out, set by the central bank to control the money supply.
Money Multiplier
A concept that describes the amount of money that banks can generate with each dollar of reserves.
Percent
A mathematical term describing one hundredth of a particular quantity; a unit of proportion or rate expressed as a fraction of 100.
Reserves
Funds or assets that banks must hold either in their own vaults or on deposit with a central bank, to meet expected withdrawal demands or regulatory requirements.
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