Which of the Following Is NOT an Example of an Exception

question 54

Multiple Choice

Which of the following is NOT an example of an exception to the privity of contract rule?

• A)a life insurance policy
• B)collateral contracts
• C)the trust
• D)bilateral contracts
• E)the undisclosed principal in an agency

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Definitions:

Federal Funds Rate

The interest rate at which banks and credit unions lend reserve balances to other depository institutions overnight, on an uncollateralized basis.

Reserve Requirement

A regulatory mandate on banks to hold a certain percentage of their deposits in reserve either in their vaults or at the central bank.

Excess Reserves

The capital reserves held by a bank or financial institution in excess of what is required by regulators, creditors, or internal controls.

Money Supply

The total amount of monetary assets available in an economy at a specific time, including currency and various types of bank deposits.