Walt's Pool World's Fax to Pat's Pumps: "I'll Take 10

question 121

Multiple Choice

Walt's Pool World's fax to Pat's Pumps: "I'll take 10 4 hp pool pumps @ $175 each."
Pat's Pumps' return fax: "Ok.Will deliver tomorrow AM."
Pat and Walt:

• A)do not have a contract because the faxes will not satisfy the statute of frauds.
• B)do not have a contract because of the mirror image rule.
• C)had a contract when Pat's fax was sent.
• D)had a contract when Pat's fax was received.

---

Definitions:

Default Risk

The risk that a borrower will not make the required payments on their debt obligations, leading to potential losses for lenders or investors.

Risk-Free Rate

The theoretical rate of return on an investment with zero risk, often represented by the yield on government securities.

Inflation Premium

The additional amount investors require on the return of an investment to compensate for the loss of purchasing power due to inflation.

Treasury Bill

Short-term government securities issued at a discount from the face value and maturing at par.