The Open Market Trading Desk Is

question 99

Multiple Choice

The Open Market Trading Desk is

• A)another name for the Federal Open Market Committee.
• B)an organization of private traders in government securities.
• C)the area on the floor of the New York Stock Exchange set aside for bond trading.
• D)a group of private securities traders that the Fed has selected to participate in open market operations.

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Definitions:

Discount Rate

This is the discount rate used in the process of DCF to calculate the present value of cash flows that are to be received in the future.

Present Value

Today's calculated value of a future monetary sum or cash flow patterns, utilizing a specific rate of return.

Discount Rate

The interest rate used to determine the present value of future cash flows, reflecting the time value of money and risk of cash flows.

Annuity

A financial instrument that provides a steady flow of payments to a person, often employed as a source of income for those in retirement.