What Was the Impact of Quantitative Easing

question 53

Multiple Choice

What was the impact of quantitative easing?

• A) Europe and the US created new money electronically
• B) There was too much money for banks to use
• C) It triggered a new lending mania to developing countries
• D) All of the above
• E) None of the above

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Definitions:

Internal Rate of Return

The discount rate at which the net present value of all cash flows from a project equals zero, used to assess the profitability of potential investments.

Cost of Capital

The rate of return that a company must earn on its investment projects to maintain its market value and attract funds.

Net Present Value

A financial metric that calculates the present value of an investment's expected cash flows minus the initial investment cost.

Internal Rate of Return

The discount rate that makes the net present value (NPV) of all cash flows from a particular project equal to zero.