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Why is there an effectiveness lag for monetary policy?
Premium
In finance, a premium refers to the amount by which the price of a financial asset or insurance policy exceeds its intrinsic or face value.
Recorded
The act of entering financial transactions into the accounting records of a company.
Effective-Interest Method
A way of calculating the amortized cost of a bond and of allocating interest expense over the bond's life, reflecting the actual interest rate earned.
Discount on Bonds Payable
The difference between the face value of a bond and its selling price, when sold for less than its face value.
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