Reserve Requirements

question 57

Multiple Choice

Reserve requirements

• A)may be set by the FOMC at whatever level they choose.
• B)may be set by the Board of Governors at whatever level it chooses.
• C)are established annually by Congress.
• D)are set by the Board of Governors within limits set by Congress.

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Definitions:

Implied Warranty

A legal assumption that a product is fit for its intended purpose, even if not expressly stated by the seller.

Merchantability

A guarantee that a product will meet reasonable quality and performance standards for sale to customers.

Merchantable

A legal term referring to goods that meet basic quality standards and are fit for the purpose for which goods of that kind are usually purchased.

UCC

Represents the Uniform Commercial Code, a broad series of legal provisions that regulate commercial activities across the United States.