The Primary Credit Lending Rate Is Determined by

question 21

Multiple Choice

The primary credit lending rate is determined by

• A) the Federal Reserve.
• B) Congress.
• C) the Treasury.
• D) the President of the United States.

---

Definitions:

Capital Component

One of three sources of capital: debt, preferred stock, or equity.

Required By Investors

Refers to the expectations or conditions that investors demand before committing capital to an investment.

Capital Structure

The combination of borrowing and ownership investments utilized by a company to finance its activities and expansion.

WACC

A method known as the Weighted Average Cost of Capital (WACC) is used to calculate a corporation's cost of capital, with every capital category assigned a proportional weight.