An Exchange Does Not Occur When

question 11

Multiple Choice

An exchange does not occur when:

• A) One consumer buys a jacket from a retailer in Malaysia
• B) Two businesses purchase products from each other
• C) Two businesses trade services between each other
• D) An individual transfers money from a checking account to a savings account
• E) One consumer votes for a political candidate in a national election

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Definitions:

Fraudulent Misrepresentation

A false statement made knowingly, without belief in its truth, or recklessly, with disregard to its truth, which is intended to induce another party to enter into a contract.

Scienter

Knowledge by the misrepresenting party that material facts have been falsely represented or omitted with an intent to deceive.

Shares

Represents units of ownership interest in a corporation or financial asset that provide for an equal distribution in any profits, if any are declared, in the form of dividends.

Popular

The term 'popular' is used to describe something widely liked, admired, or accepted by a large number of people.