In Taking a Multiple-Choice Test, You First Read the Question

question 16

Multiple Choice

In taking a multiple-choice test, you first read the question and try to develop an answer. Then you check to see if your answer is one of the choices. If it's not, you try to eliminate any obviously wrong alternatives, and finally try to find the best answer from among those that remain. This problem-solving strategy is an example of ________.

• A) top-down processing
• B) an algorithm
• C) functional fixedness
• D) a heuristic

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Definitions:

Cash Flow

A financial measurement that shows the net amount of cash and cash-equivalents being transferred into and out of a business over a specified period.

Annuity

A finite series of equal payments at equal intervals of time. In an ordinary annuity the payments occur at the ends of the time periods. In an annuity due, they occur at the beginnings.

Discounted Value

The present value of a future amount of money or a series of cash flows, adjusted for time value of money.

Annuity

A financial product that pays out a fixed stream of payments to an individual, usually used as an income stream in retirement.