Examlex
List the two main functions performed by the Fed?
Compounded Monthly
Interest on an investment is calculated monthly and added to the principal sum, affecting future interest calculations.
Annual Rate
The interest rate for a period of one year, used to compare the yield of different financial products or investments.
Discount Rate
The interest rate charged to commercial banks and other financial institutions for the loans they take from the central bank's discount window, also a factor in present value calculations.
Perpetuity
A type of annuity that continues indefinitely, often used in financial modeling to represent a constant stream of identical cash flows without an end.
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