Under the General Rule of the Third Restatement, Death of a Principal

question 1

True/False

Under the general rule of the Third Restatement, death of a principal terminates all authority of an agent, including apparent authority, even though no notice is given to third parties.

---

Definitions:

Lender of Last Resort

A function usually performed by a central bank to provide funds to financial institutions facing liquidity problems to prevent their failure and systemic risks to the economy.

Excess Reserves

The amount of reserves held by banks over and above the legally mandated requirement.

Destroyed Money

Money that has been taken out of circulation, either physically by damage or dematerialization, or digitally by central authorities to control the money supply.

Liquidity Trap

A scenario where low interest rates and high savings rates make it difficult for monetary policy to boost economic growth.