Fact Pattern 18-B1

question 33

Multiple Choice

Fact Pattern 18-B1
A enters into a contract to buy 132 acres from B to subdivide and sell in quarter-acre lots for C Acres, a residential development.
-Refer to Fact Pattern 18-B1. If A breaches the contract, B's remedy would most likely be

• A) a certain ratio of the amount that A has in liquid funds.
• B) a percentage of A's unrealized profit.
• C) the difference between the land's contract and market prices.
• D) specific performance.

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Definitions:

U.S. Government Securities

Financial instruments issued by the United States Department of the Treasury to finance federal government spending.

Clear

in an economic or financial context often means to settle a transaction or complete a trade or payment process.

Federal Reserve's Assets

These are financial assets held by the Federal Reserve Bank, including government securities, mortgage-backed securities, and loans to banks.

Excess Reserves

The capital reserves held by a bank or financial institution in excess of what is required by regulators, creditors, or internal controls.