The Cash Used to Make Change When Customers Pay for Their

question 70

Multiple Choice

The cash used to make change when customers pay for their purchases in cash is an example of the ________ motive for holding cash.

• A) speculative
• B) daily float
• C) compensating balance
• D) precautionary
• E) transaction

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Definitions:

Jnd

The minimum difference in stimulation that a person can detect 50% of the time, also known as the just noticeable difference.

Absolute Threshold

The minimum intensity level of a stimulus required for a person to detect its presence at least half the time.

Proportional Differences

Variations that are relative to the size or significance of the items being compared.

Proportional Differences

Refers to the comparison of ratios or fractions, highlighting the relative difference in size or magnitude between two or more quantities.