"Float" Takes Place Because

question 100

Multiple Choice

"Float" takes place because:

• A) a firm is early in paying its bills.
• B) the level of cash on the firm's books is equal to the level of cash in the bank.
• C) a lag exists between writing a cheque and it being debited to the bank account.
• D) a customer writes "hot" cheques.

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Definitions:

Fundamental Attribution Error

The tendency to overemphasize personal traits and underemphasize situational factors when explaining others' behavior.

Situational Causes

Factors external to an individual that are viewed as causes for behavior.

Heuristics

Simplified strategies or shortcuts used to make decisions and solve problems more efficiently.

Castro Study

A reference to a classic study in social psychology that examined attitudes and persuasion, often associated with the elaboration likelihood model.