A Written Pledge by a Borrower to Pay a Certain

question 129

Multiple Choice

A written pledge by a borrower to pay a certain sum of money to a creditor at a specified future date is called

• A) a promissory note.
• B) collateral.
• C) a factor account.
• D) a charge account.
• E) a term loan agreement.

---

Definitions:

Federal Reserve Board

Governs the Federal Reserve System, the central banking system of the United States, and oversees the nation's money supply and banking industry.

Money Laundering

The illegal process of making large amounts of money generated by a criminal activity, such as drug trafficking or terrorist funding, appear to be earned legally.

Reserve Requirements

Regulations set by central banks determining the minimum amount of reserves that banks must hold against deposits.