Question: Question 39 1 pts What is the present value (PV) today of $500,000 that you will receive after 20 years if the discount rate is

 Question 39 1 pts What is the present value (PV) todayof $500,000 that you will receive after 20 years if the discount

Question 39 1 pts What is the present value (PV) today of $500,000 that you will receive after 20 years if the discount rate is 25 percent? (Choose the number closest to the correct answer). O a. PV = $124,500 O b. PV = $12,600 O c. PV = $10,120 O d. PV = $5,765 O e. PV = $2,250Question 40 1 pts Which of the following events would cause the total amount of reserves in the banking system to increase for sure? 0 Employees deposit their paychecks in their bank deposit accounts at the end of the month. 0 Banks lend large amounts of money to households. 0 Banks lend large amounts of money to other banks. 0 The Fed reduces the interest rate it pays on reserves. 0 The Fed reduces the discount rate. Q The Fed conducts an open market purchase. 0 The Fed conducts an open market sale

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!