In the Aftermath of the Financial Crisis That Began in 2008,the

question 60

Multiple Choice

In the aftermath of the financial crisis that began in 2008,the Fed's assets on its balance sheet:

• A)grew to $100 billion.
• B)shrank to almost zero.
• C)grew to over $2 trillion.
• D)stayed more or less the same.
• E)grew to about $1 trillion.

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Definitions:

Desired Rate

The target interest rate set by a company or investor for a specific investment or project.

Internal Rate

Often referred to as Internal Rate of Return (IRR), it's a metric used in financial analysis to estimate the profitability of potential investments.

Compound Interest

A method of interest computation that involves charging interest on the original loan or deposit amount as well as on any interest that has built up during past periods.

Time Value

The principle that having money in the present is more valuable than having the same sum in the future because of its ability to generate earnings.