Which of the Following Statements Is True of Contracts

question 18

Multiple Choice

Which of the following statements is true of contracts?

• A) The offeror is the party to whom an offer to enter into a contract is made.
• B) An offeree is the authority that supervises the signing of a contract.
• C) A contract is created when the offer is made and before it is accepted.
• D) To have an enforceable contract, there must be mutual assent by the parties.

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Definitions:

Excess Reserves

Excess funds maintained by a bank or financial institution above the minimum levels mandated by regulatory authorities, creditors, or the institution's internal regulations.

Securities

Financial instruments that represent an ownership position in a publicly-traded corporation (stock), a creditor relationship with a governmental body or a corporation (bond), or rights to ownership as represented by an option.

Commercial Bank

A financial institution that provides services such as accepting deposits, providing business loans, and offering basic investment products.

Federal Reserve Bank

The central banking system of the United States, responsible for monetary policy, regulation of the banking industry, and maintaining stability of the financial system.