Which of the Following Events Will Not Have the Effect

question 28

Multiple Choice

Which of the following events will not have the effect of automatically discharging a guarantee?

• A)Full payment of the debt.
• B)Modification of the loan contract by the creditor without the consent of the guarantor.
• C)Destruction of the security for the loan by the creditor.
• D)Alteration of the loan contract by the debtor without the consent of the creditor.

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Definitions:

Reserve Requirement

The minimum amount of reserves a bank must hold against deposits, as mandated by the central bank.

Money Supply

The complete portfolio of monetary assets at a fixed point in time within an economy, including cash, coins, and amounts in checking and savings accounts.

Deposits

Funds placed into banking institutions for safekeeping, which can earn interest over time depending on the type of account.

Federal Open Market Committee

The branch of the Federal Reserve System that determines the direction of monetary policy, including decisions on interest rates and the growth of the United States money supply.