One of the Three Types of Loans in the Fed

question 31

Short Answer

One of the three types of loans in the Fed Funds market,__________________ loans are longer-term Fed funds contracts lasting several days,weeks or months,often accompanied by a written contract.

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Definitions:

Salvage Value

The anticipated recovery value of an asset when it no longer has usable life.

Straight-Line Method

A method of calculating depreciation by evenly allocating the cost of an asset minus its salvage value over its estimated useful life.

Office Furniture

Items and fixtures used in an office setting for the purpose of work, including desks, chairs, and file cabinets.

Revised Annual Depreciation

The updated calculation of depreciation expense per year after making any necessary adjustments to asset value or useful life.