Assets Liabilities Reserve                                    100 Deposits 1000 Loan                                        900   Total                                        1000 Total                                        1000 Instructions: The value of required reserve ratio (RR) is Answer% Now assume the amount of $100 were deposited inside the bank The value of immediate change in deposit is Answer The value of immediate change in reserveAnswer The value of immediate change in loan is Answer{

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A: answer are as follows.

Present Value

Present value (PV) is defined as the current or present value of all future sums of cash flow or money at a specified rate of return. This rate of return is known as the discounted rate, which is essentially the interest rate, discounted over some time. The expected cash flows are discounted at a discount rate to compute the present value. The higher the discount rate, the higher the future value (FV), but the lower the present value.