The Power of a "Rippling Effect" of Adding Money to the Financial

question 33

Multiple Choice

The power of a "rippling effect" of adding money to the financial system is measured by the ________.

• A)ripple ratio
• B)money multiplier
• C)multiplier ratio
• D)money magnifier
• E)magnifier ratio

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Definitions:

Bond Discount

The variance between the face value of a bond and the price at which it's sold, occurring when the bond sells below its face value.

Carrying Value

The amount an asset is valued at in a company's books after accounting for depreciation and amortization.

Bond Premium

A bond premium occurs when a bond sells for more than its face value, typically because its interest rate is higher than current market rates.

Cash Interest Paid

The actual amount of interest in cash that a company pays on its borrowings during a specific period.