Contagion Is

question 94

Multiple Choice

Contagion is:

• A)The failure of one bank spreading to other banks through depositors withdrawing of funds
• B)The phenomenon that if one bank loan defaults it will cause other bank loans to default
• C)The rapid contraction of investment spending that occurs when interest rates are increased by the Federal Reserve
• D)The rapid inflation that results from the printing of money

---

Definitions:

Counter-Offer

A proposal made in response to an original offer, differing in terms and thereby rejecting the original offer.

Offeror

The party in a contract negotiation who presents the offer to enter into an agreement.

Offeree

The person to whom an offer is made in a contract situation.

Capacity

The legal ability of an individual or organization to enter into a contract, including being of the required age and sound mind.