All of the Following Are Examples of U

question 51

Multiple Choice

All of the following are examples of U.S. shadow banks except:

• A)Bear Stearns.
• B)AIG.
• C)Bank of America.
• D)Lehman Brothers.

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Definitions:

Present Value Factor

A multiplier used in calculating the present value of a future amount of money or stream of cash flows given a specific discount rate.

Compounded Semiannually

A method of calculating interest where the interest is added to the principal amount twice a year, leading to interest earning interest over time.

Compounded Annually

A method of calculating interest where the interest is added to the principal sum each year, thus each subsequent interest calculation is made on an increased principal.

Present Value

The current value of a future amount of money or stream of cash flows given a specified rate of return.