Which of the Following Is Correct with Regard to the Capacity

question 44

Multiple Choice

Which of the following is correct with regard to the capacity of an agent?

• A) If an incompetent person who is not under guardianship appoints an agent, contracts made by that agent are voidable.
• B) No mental capacity is necessary for an agent.
• C) The incapacity of the agent disqualifies him from making a contract that is binding on his principal.
• D) A young child or a person under guardianship has the capacity to act as an agent.

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Definitions:

Federal Reserve Board

The Federal Reserve Board is the governing body of the Federal Reserve System, the central banking system of the United States, responsible for setting national monetary policy.

M1

A category within the money supply that includes physical currency and coin, demand deposits, traveler's checks, and other checkable deposits.

Savings Deposits

Accounts held at financial institutions that earn interest while providing funds liquidity with few, if any, restrictions on withdrawals.

Demand Deposits

Bank accounts from which money can be withdrawn at any time without any advance notice.