To Be Valid, Offers Must Meet All of the Following

question 56

Multiple Choice

To be valid, offers must meet all of the following criteria except:

• A) clear.
• B) reasonable.
• C) serious.
• D) communicated.

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Definitions:

Reserve Ratio

This is the fraction of depositors' balances banks must have on hand as cash.

Discount Rate

The rate of interest applied to loans obtained by commercial banks and other saving organizations from the lending facility of their regional Federal Reserve Bank.

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.