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What Is an Optimal Policy? If a Policy Is Not

question 14

Essay

What is an optimal policy? If a policy is not optimal, what does it imply in terms of utilization of resources?


Definitions:

Bounce

The return of a paper check or electronic funds transfer due to insufficient funds in the account it was drawn on.

Liable

Being legally responsible or answerable for an act or a circumstance, often involving damage or injury.

Uncertified Check

An uncertified check is a personal or business check that has not been verified or guaranteed by the bank upon which it is drawn, as opposed to a certified check.

Good Faith

A principle that denotes honesty or sincerity of intention in the fulfillment of one's duties and agreements.

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