One of the Most Significant Advantages Claimed by Branch Banking

question 10

Multiple Choice

One of the most significant advantages claimed by branch banking is:

• A)lower interest rates are usually available from branch bank
• B)convenience for customers
• C)banking operations are easier to regulate
• D)all the above

Explain the conditions under which modifications to contracts require additional consideration under common law versus the UCC.

Discuss specific transactions that are enforceable without consideration (e.g., promissory estoppel, moral obligations).

Discriminate between enforceable promises and non-binding promises such as illusory promises and past consideration.

Understand the legal concepts related to substituted contracts and their effects on original agreements.

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Definitions:

Rational Consumer

An assumption in economics that consumers always make logical decisions that provide them with the highest level of personal utility.

Net Borrower

An entity, such as a government or a business, that borrows more money than it lends, resulting in a net outflow of funds.

Interest Rate

The part of a loan that incurs interest for the borrower, generally expressed as an annual percentage of the outstanding loan.

Net Saver

An individual or institution that saves more resources or funds than they spend or consume.