Which of the Following Statements Is True About the Federal

question 81

Multiple Choice

Which of the following statements is true about the Federal Arbitration Act (FAA) of 1925?

• A) The FAA restricts parties from obtaining a court order to compel arbitration with an arbitration agreement.
• B) The FAA restricts federal courts from hearing issues of law that have been decided by an arbitrator.
• C) The FAA provides that arbitration agreements involving commerce are revocable contracts under ordinary circumstances.
• D) Breach of contract cases and tort claims are not candidates for arbitration as per the FAA.

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Definitions:

Loanable Funds

The total funds available within an economy for borrowing, including savings and other investments.

Interest Rate

The percentage of a sum of money charged for its use, often expressed as an annual percentage rate.

Present Value

The value today of a sum of money or series of payments expected in the future, adjusted for a certain rate of return.

Interest Rate

The cost of borrowing money or the return on investment, expressed as a percentage of the amount borrowed or invested.