Cost of Money

All are locations of Federal Reserve Banks except?

• Boston, MA   
• New York, NY
• Philadelphia, PA
• Petersburg, VA

The total cost of a loan for a whole year (annualized), rather than just a monthly fee/rate

• Annual Percentage Yield 
• Annual Percentage Rate
• Annual Percentage Rank 
• Annual Percentage 

Also referred to as interest on interest?

• Simple Interest 
• Interest 
• Compound Interest 
• Earned Interest 

Interest is calculated based only on the original principal amount of a loan.

• Simple Interest 
• Applied Interest 
• Compound Interest 

Interest is calculated based only on the original principal amount of a loan.

• Simple Interest 
• Applied Interest 
• Compound Interest 
• Rule 72

The cost of borrowing money?

• Interest Rate 
• Interest 
• Simple Interest 
• Compound Interest 

Stabilizing the economy, clearing checks, regulating the money supply, and Influencing bank interest rates are all powers of?

• Federal Reserve 
• Federal Bureau of Investigation 
• IRS

Used to calculate how long it will take for an investment’s value to DOUBLE.

• Time Value of Money 
• Rule of 72
• Future Value 
• Present Value 

A dollar today is worth more than a dollar tomorrow is the concept of?

• Compound Interest 
• Present Value 
• Future Value 
• Time Value 

Total Interest = Principal x Interest Rate x Term is the formula used to determine?

• Compound Interest 
• Simple Interest 
• Amount of time until money doubles 
• Annual Percentage Rate