Generally,which of the Following Statements Relating to Contractual Capacity Is

question 4

Multiple Choice

Generally,which of the following statements relating to contractual capacity is correct?

• A) Persons with full competence make enforceable contracts.
• B) People with limited competence make void contracts.
• C) People with no competence make voidable contracts.
• D) Minors make void contracts.
• E) People who have been adjudicated insane make voidable contracts.

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Definitions:

Canadian Dollar

The official currency of Canada, represented by the symbol CAD or C$.

Absolute Purchasing Power Parity

The theory that, in the absence of transaction costs and other barriers, identical goods in different countries should have the same price when expressed in a common currency.

Transaction Costs

The expenses incurred when buying or selling goods and services, which may include commissions, fees, and the bid-ask spread.

Covered Interest Arbitrage

An investment strategy that involves exchanging domestic currency for a foreign currency, investing in foreign interest-bearing assets, and using forward contracts to hedge exchange rate risk.