If an Agent Is to Issue Promissory Notes or Sign

question 42

True/False

If an agent is to issue promissory notes or sign cheques in the name of the principal,then the agency agreement should be in writing.

---

Definitions:

Government Securities

Financial instruments issued by the government to finance its expenditures, offering a return to investors.

Stock Market

A marketplace where shares of public companies are bought and sold.

Actual Money Multiplier

The real-world effect of a change in the base money supply on the money supply, taking into account changes in reserves and currency holdings.

Simple Money Multiplier

Refers to the ratio indicating the maximum amount of money that banks can theoretically generate with each dollar of reserves.