(Table: Maximin Principle) Refer to the Table

question 89

Multiple Choice

(Table: Maximin Principle) Refer to the table. If incomeis shown in thousands of dollars, according to Rawls'smaximin principle, Society ________ is preferred toSociety ________.

• A)A; D
• B)B; C
• C)C; A
• D)D; B

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Definitions:

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.

Miller-Orr Model

A financial model used to manage cash balances and optimize the level of cash holdings by setting upper and lower limits within which the balance can fluctuate before triggering a transfer of funds.

Cash Balance

The amount of cash a company has on hand, which includes currency, coins, and balances in checking and savings accounts.