The fed funds rate is the rate

Assignment Help Financial Management

Reference no: EM13731900

The Fed funds rate is the rate that

A. banks charge for loans to corporate customers.

B. banks charge to lend foreign exchange to customers.

C. the Federal Reserve charges on emergency loans to commercial banks.

D. banks charge each other on loans of excess reserves.

E. banks charge securities dealers to finance their inventory.

Reference no: EM13731900

Questions Cloud

Business environment has changed : The business environment has changed in the past ten years. What are some factors in the current environment causing businesses to change and how is it affecting the way they use cost management? How does this impact their competitive strategies?

What is present value of this cash flow pattern : You have been offered the opportunity to invest in a project that will pay $1,532 per year at the end of the years one through three and $11,071 per year at the end of years 4 and 5. If the appropriate discount rate is 18.88 percent per year, what is..

Calculate the present value of an assets cash flow : When you calculate the Present Value of an asset's cash flow,

How much should he set aside today for the purchase : Stephen plans to purchase a car 5 years from now. The car will cost $55,339 at that time. Assume that Stephen can earn 5.16 percent (compounded monthly) on his money. How much should he set aside today for the purchase?

The fed funds rate is the rate : The Fed funds rate is the rate that

Appropriate measure to use than net present value : Despite shortcomings of the internal rate of return in some situations, why do most financial managers use IRR along with NPV when evaluating projects? Is there a situation in which IRR might be more appropriate measure to use than Net present value?

Estimate the incremental operating cash flows attributable : Wilber Corporation is considering replacing a machine. The replacement will cut operating expenses by $24,000 per year for each of the 5 years the machine is expected to last. Although the old machine has a zero book value, it has a remaining useful ..

What is the minimum marginal tax rate the investor : An investor is trying to decide between a muni paying 5.75 percent or an equivalent taxable corporate paying 8.25 percent. What is the minimum marginal tax rate the investor must have to consider buying the municipal bond?

The average annual growth rate of dividends for this firm : A firms dividends have grown over the last several years. 3 years ago the firm paid a dividend of $2. Yesterday it paid a dividend of $4. What was the average annual growth rate of dividends for this firm? Round the answer to two decimal places in pe..

User Account

All Pages