The Principal Works on Behalf of an Agent

question 27

True/False

The principal works on behalf of an agent.

---

Definitions:

Deposit Expansion Multiplier

A ratio that explains the total increase in deposits within the banking system generated from an initial deposit, based on the reserve requirement ratio.

Open Market Securities

Financial instruments such as bonds or stocks that are traded freely on the open market and can be bought and sold by investors.

Fed

Short for the Federal Reserve, which is the central banking system of the United States, responsible for monetary policy.

Business Investment

The act of allocating resources, usually in the form of capital, to create, expand, or improve a business's assets.