The Federal Reserve's Credit Policy Refers to

question 264

Multiple Choice

The Federal Reserve's credit policy refers to

• A) a direct credit on bank depositors' saving and checking accounts.
• B) regulations on terms on credit cards that banks issue.
• C) the Fed's direct lending to homeowners and students.
• D) the Fed's direct lending to financial and nonfinancial firms.

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Definitions:

Ratification

The adoption or affirmance by a person of a prior act that did not bind him.

Mutual Mistake

A misunderstanding between all parties of a contract regarding the basic facts or terms of the contract, which can make the agreement voidable.

Unilateral Mistake

A misunderstanding or error made by one party in a contract, which may not necessarily void the contract.

Misrepresentation

The assertion of a fact that is not in accord with the truth. A contract can be rescinded on the ground of misrepresentation when the assertion relates to a material fact or is made fraudulently and the other party actually and justifiably relies on the assertion.