If the haricut charged by the Fed is very large
A. banks will be discouraged from borrowing.
B. transaction accounts held by banks increase.
C. the Fed loses a lot of money if banks default on their loans.
D. the Fed's discount rate rises.
Answer: A
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Miller has a contract to sell 1,000 bushels of wheat to a bakery. The wheat is stored in a grain elevator and has become infested with insects. Miller is:
A) discharged from performance because of impossibility if he doesn't have other wheat to substitute. B) discharged because of frustration. C) not discharged, but must substitute wheat or pay damages to the bakery for breach of contract. D) discharged if he can prove that he did not cause the damages to his wheat.
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Answer the following statement true (T) or false (F)
Sylvia and Morris were married and owned their home as tenants by the entirety. When Morris died, his will said that he left his half of his home to his brother Tim. Who owns the home at Morris's death?
A) The home is now owned solely by Sylvia. B) The home is now owned by a joint tenancy between Sylvia and Tim. C) The home is now owned by a tenancy in common between Sylvia and Tim. D) The home is now owned by Sylvia and the state, in equal and divisible shares.