Working as a financial analyst for a large corporate bank, y…

Working as a financial analyst for a large corporate bank, you are tasked with reconciling the amount of reserves in order to meet the reserve requirement. This means that each night you have to evaluate how far under reserves the bank currently is and facilitate borrowing enough cash to meet the reserve requirement. What is the rate that you are most likely to pay to another bank when borrowing?

You are at a car dealership and have just found a car you wo…

You are at a car dealership and have just found a car you would like to purchase. After agreeing on a sale price with the salesperson, you fill out some of the necessary paperwork and are taken to work through financials with the financier. You are given two different loan options. Loan A has a payment due today, and Loan B has its first payment in a month. You calculate the present value of each loan and find that Loan A is lowest. Which do you choose and why?