BEC Flashcards
1
Q
Money Multiplier
A
= 1/Required Reserve Ratio
2
Q
Potential money creation
A
= Excess Reserves x Money multiplier
3
Q
Payback Period
A
= Initial Investment/Annual Cash Flow
4
Q
Discounted break-even point
A
is the time required to recover the cash invested in a project. It is the point where discounted cumulative cash inflows on a project equal discounted total cash outflows.
