The Principles of Economics Can Explain Which of the Following?Why

question 89

Multiple Choice

The principles of economics can explain which of the following?Why people choose to work or go to collegeWhy a country might prosperHow the value of money changes over time

• A) II and III only
• B) I and II only
• C) III only
• D) I, II, and III

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Definitions:

Lockbox System

A service provided by banks to companies for the receipt of payment from customers, whereby payments are sent directly to a post office box, rather than to the company, to expedite the deposit process.

Clearing Process

The procedure by which financial trades settle; that is, the correct and timely transfer of funds to the seller and securities to the buyer.

Zero-Balance Account

A bank account which maintains a balance of zero by automatically transferring funds from a master account in an amount only large enough to cover checks presented.

BAT Model

A behavioral approach to financial modeling that incorporates psychological factors into market predictions.