The High Point of Economic Activity Prior to a Recession

question 99

Multiple Choice

The high point of economic activity prior to a recession is called the

• A) depression.
• B) expansion.
• C) peak.
• D) boom.
• E) trough.

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Definitions:

Loan Term

The duration of time agreed upon by the lender and borrower for the repayment of a loan.

Discount Rate

The interest rate charged to commercial banks and other depository institutions for loans received from a central bank's discount window; or alternatively, used in discounted cash flow (DCF) analysis to present value future cash flows.

Present Value

The immediate value of a future amount of money or stream of payments, given a set rate of return.

Annuity

An investment vehicle that disburses a fixed series of payments to an individual, typically serving as an income provision for those who have retired.