In an Attempt to Bring Lenders and Borrowers Together Following

question 178

Multiple Choice

In an attempt to bring lenders and borrowers together following the financial crisis of 2008,the Federal Reserve made a large amount of new funds available to financial markets.The Fed expected this to increase the money supply and the total amount of lending because of the multiplier effect,in which a given amount of new reserves results in a multiple increase in

• A)stockholders' equity.
• B)bank deposits.
• C)long-term debt.
• D)required reserves.

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Definitions:

Unilateral Contract

An agreement where only one party makes a promise or assumes an obligation to perform if a specified condition is met by another party.

Act

A written ordinance of a legislative body or an action done with a specific intention or outcome in mind.

Legal Value

Refers to something of worth that is recognized by law, often in the context of contracts where it pertains to the exchange of goods, services, or promises that are enforceable.

Preexisting Duty

An obligation that one party already owes to another under the law or an existing contract, which cannot serve as new consideration for a new contract.