For Ratification to Be Effective

question 1

Multiple Choice

For ratification to be effective:

• A) the agent cannot disclose the name of the principal.
• B) the principal must have been in existence at the time of the agent's action.
• C) the agent must have the capacity to complete the unauthorized act and ratify it.
• D) the necessity of the principal should not be served by subagents.

Analyze how changes in the money supply affect demand, value of money, and economic equilibrium.

Explain how inflation affects savings, interest rates, and economic decisions.

Understand the quantity theory of money and its implications on the economy.

Differentiate between nominal and real variables and their significance in economic analysis.

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Definitions:

Use Of Money

The various purposes for which money is used in an economy, including spending, saving, and investing.

Interest Rates

The percentage charged on borrowed money or paid on savings, essentially the cost of borrowing or the reward for saving.

Annually

Occurring every year or pertaining to a period of one year.

Consumer Credit-Card Rate

The interest rate that banks charge consumers on the balances they carry on their credit cards.