________ Are Intended to Punish Flagrant Wrongdoers and to Deter

question 11

Multiple Choice

________ are intended to punish flagrant wrongdoers and to deter them.

• A)Compensatory damages
• B)Punitive damages
• C)Liquidated damages
• D)Tort damages

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Definitions:

Government Bonds

Long-term debt of the federal government.

Commercial Bank Reserves

Funds that commercial banks are required to hold in reserve against deposits, either as cash in their vaults or as deposits with the central bank.

Reserve Ratio

The portion of depositors' balances that banks must have on hand as cash, as required by central banking regulations.

Discount Rate

The interest rate charged to commercial banks and other financial institutions for the loans they take from the central bank or Federal Reserve.