.

: Calculate the net present value of each of the three hypothetical projects described below. Assume
the interest rate is 5%.
Project A: You receive an immediate payoff of $1,000.
Project B: You pay $100 today in order to receive $1,200 a year from now.
Project C: You receive $1,200 today but must pay $200 one year from now.Project A net present
value: $1,000
Project B net present value: −$100 + ($1,200/1.05) = $1,042.86
Project C net present value: $1,200 − ($200/1.05) = $1,009.52
4.: The fraction of bank deposits actually held as reserves is the
a. reserve ratio.
b. required reserve ratio.
c. excess reserve ratio.
d. reserve requirement.
e. monetary base.a
5.: How long does the chair serve?4 years. May be reappointed
6.: How long do members serve?14 year terms
7.: How many members serve in this group?12
8.: How many members serve on the group?7