A Change in Contract Law Between the Nineteenth and Twentieth

question 22

Multiple Choice

A change in contract law between the nineteenth and twentieth centuries was:

• A) a relaxation of requirements of contract formation.
• B) an increase in technical requirements for contract formation.
• C) a movement toward enforcement of promises only if there was strict compliance with basic contract requirements.
• D) increasing difficulty for parties to get out of a contract.

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Definitions:

Reserve Requirements

Regulations set by central banks determining the minimum amount of reserves that banks must hold against deposits, influencing the bank's ability to lend.

Money Supply

The total amount of monetary assets available in an economy at any specific time, including cash, bank deposits, and other liquid assets.

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.