A Modification of a Preexisting Contract Occurs When the Parties

question 68

True/False

A modification of a preexisting contract occurs when the parties agree to change one or more of its terms.

---

Definitions:

Government Securities

Government Securities are financial instruments issued by the government to borrow money from investors, such as Treasury bonds, bills, and notes.

Bank Assets

Bank assets are resources owned by a bank, including loans, securities, and cash, which generate income.

Federal Funds Rate

The interest rate at which depository institutions lend reserve balances to other depository institutions overnight, a central tool used by the Federal Reserve in monetary policy.

Money Supply

The total amount of money available in an economy at any given time, including cash and digital balances that are readily accessible for spending.