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Describe the relationship between the Federal Reserve and the legislative and executive branches of the U.S. government.
Present Value
The current value of a future sum of money or stream of cash flows given a specific rate of return.
Interest Rate
The percentage of a sum of money charged for its use, typically by a bank or financial institution on loans or savings.
Market Rate of Interest
The prevailing interest rate available in the marketplace on loans and deposits, determined by the demand and supply of credit.
Present Value
The current worth of a future sum of money or stream of cash flows given a specified rate of return, used in evaluating investment opportunities.
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