If You Are Asked to Choose Between $100 Today and $150

question 16

Multiple Choice

If you are asked to choose between $100 today and $150 one year from now, you are being asked to

• A)make a guess.
• B)reveal your implied interest rate.
• C)compare two values which are not comparable in principle.
• D)reveal your private financial information.
• E)make a choice under uncertainty.

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Definitions:

Hydrophobic

Describes a substance that resists dissolving in water.

Phospholipid

A lipid with two (hydrophobic) fatty acid tails and a (hydrophilic) phosphate group in its head; main constituent of lipid bilayers that form cell membranes.

Aqueous

Aqueous describes something that is related to, composed of, or dissolved in water.

Scanning Electron Micrograph

An image produced using a scanning electron microscope to examine surfaces of materials at high magnification.