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Clarence Is a Cat That Is Always Fed in the Same

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Clarence is a cat that is always fed in the same place, at the same time, every day. His food is taken out of the same cupboard before each meal, which has a particular sound when it opens that is loud enough to be noticeable. Although that cupboard is rarely opened for anything other than his cat food, when it is, Clarence seems to expect that he's about to be fed. What could explain his behaviour?


Definitions:

Collateral

An asset pledged as security for repayment of a loan, to be forfeited in case of default.

Probability of Payment

The likelihood or chance that a borrower will meet their debt obligations on time.

Cash Discount Period

The time frame within which a purchaser can pay less than the full invoice amount due to taking advantage of a cash discount offered by the seller.

Credit Period

The duration of time a buyer is allowed to pay for goods or services after the delivery date.

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