Which of the Following Terms Represents a Promise by the Bank

question 31

Multiple Choice

Which of the following terms represents a promise by the bank to pay a firm on behalf of another firm,if specified conditions are met?

• A) Banker's acceptance
• B) Bank trust service
• C) Certified check
• D) Letter of credit
• E) Currency exchange agreement

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Definitions:

Recessions

Times of short-term economic downturn characterized by a decrease in commerce and industrial operations, usually recognized by a decrease in Gross Domestic Product (GDP) for two consecutive quarters.

Depressions

Extended periods of significant decline in economic activity across an economy, characterized by high unemployment, low consumer spending, and reduced industrial output.

Self Regulating

A system or market that is able to adjust and correct itself without external intervention.

Keynes

John Maynard Keynes, a British economist whose ideas fundamentally changed the theory and practice of macroeconomics and the economic policies of governments.