Examlex

Solved

Use the Following to Answer Questions

question 459

Multiple Choice

Use the following to answer questions :
Scenario: Money Creation
The reserve requirement is 20%. Leroy receives $1,000 as a graduation present and deposits the money in his checking account. The bank does NOT want to hold excess reserves.
-(Scenario: Money Creation) Look at the scenario Money Creation. Immediately after the deposit, reserves _____ and demand deposits _____ by $1,000.


Definitions:

Disclaimer

A term in a contract whereby a party attempts to relieve itself of some potential liability associated with the contract. The most common example is the seller’s attempt to disclaim liability for defects in goods that it sells.

Recovery

The act of obtaining something of value through legal means, often in compensation for damages or loss.

Strict Liability

Refers to a legal doctrine where a party is responsible for damages or harm caused without needing to prove negligence or fault.

Restatement (Second)

A collection of textbooks that seek to inform judges and lawyers about general principles of common law in the United States.

Related Questions