Table 21-3. -Refer to Table 21-3.Starting from the Situation as Depicted by Situation

question 383

Multiple Choice

Table 21-3.

-Refer to Table 21-3.Starting from the situation as depicted by the T-account,if someone deposits $500 into the First Bank of Fairfield,and if the bank makes new loans so as to keep its reserve ratio unchanged,then the amount of new loans that it makes will be

• A) $320.
• B) $400.
• C) $680.
• D) $750.

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Definitions:

Unilateral Contract

A contract in which one party makes a promise in exchange for the other party's performance, rather than a promise in return.

Prior Unenforceable Obligations

Refers to commitments or agreements that were not legally binding or couldn't be enforced due to certain conditions or deficiencies in their formation.

Consideration

Something of value (such as goods, services, money, or a promise) exchanged between parties in a contract.

Preexisting Contract

An agreement that was already in place before certain actions were taken or before a dispute arose.