Use the Following to Answer Questions

question 63

Multiple Choice

Use the following to answer questions:
-(Table: Natasha's Total Utility) Look at the table Natasha's Total Utility. Natasha earns $50,000 per year but faces losing $20,000 of it if she is late with her work. If there is a 25% probability that Natasha will be late with her work and her income will then equal $30,000, her expected income is:

• A) $32,500.
• B) $38,200.
• C) $40,500.
• D) $45,000.

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Definitions:

Promissory Note

A written, legally binding document in which one party promises to pay another a definite sum of money either on demand or at a specified future date.

Certificate Of Deposit

A Certificate of Deposit (CD) is a financial product offered by banks and credit unions that provides an interest rate premium in exchange for the customer agreeing to leave a lump-sum deposit untouched for a predetermined period of time.

Multiple Endorsements

Refers to the practice in banking and finance where a document, such as a check, is signed over to another party multiple times.

Liable

Being legally responsible for something, typically referring to obligations in law.