Brian Is Paid Monthly Via a Direct Deposit into an Interest-Bearing

question 13

Multiple Choice

Brian is paid monthly via a direct deposit into an interest-bearing checking account. He withdraws $500 of this pay in cash at the beginning of the month to spend throughout it. However, due to recent inflation, Brian decides to instead withdraw $125 from the bank every week, so that his money can earn interest for as long as possible. The time and energy Brian spends visiting the bank more often would be classified as a:

• A) shoe-leather cost.
• B) menu cost.
• C) transactions cost.
• D) tax distortion.

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Definitions:

Short-Term Memory

A memory system that temporarily holds a small amount of information for a brief period, typically from a few seconds to about a minute.

Health Assessment

The systematic process of evaluating the health status of an individual or a community, involving history taking, physical examination, and sometimes diagnostic testing.

Legal Document

A formal document that states some contractual relationship or grants some right.

Line Drawings

Simplified drawings consisting of lines without shading or detail, often used for illustrative and educational purposes.