Examlex
Which of the following is NOT a key variable in the weighted average cost of capital (WACC) equation?
Discount Rate
This refers to the cost of borrowing for commercial banks and various deposit institutions, derived from their area's Federal Reserve Bank lending service.
Banks Borrow
Banks borrow refers to the process by which banks take loans from other banks, financial institutions, or the central bank to maintain liquidity and meet their loan obligations to depositors.
Cash Reserves
Funds that a person or entity keeps on hand to meet short-term and emergency funding needs.
Medium of Exchange
An instrument or system used to facilitate the sale, purchase, or trade of goods and services between parties.
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