In the Baumol-Tobin Model, the Optimal Number of Trips to the Bank

question 53

Multiple Choice

In the Baumol-Tobin model, the optimal number of trips to the bank is determined by minimizing the total costs of holding money that are the:

• A)forgone interest.
• B)costs of trips to the bank.
• C)forgone interest plus the costs of trips to the bank.
• D)costs of trips to the bank minus the forgone interest.

---

Definitions:

Neo-Freudian

A term referring to psychologists and theorists who accepted the basic components of Freud's theory but modified and expanded upon it, often placing less emphasis on sexuality and more on social and cultural factors.

Adler

Alfred Adler was an Austrian medical doctor and psychotherapist who founded individual psychology, emphasizing the importance of feelings of inferiority and the striving for superiority in personality development.

Dethroning

The act of removing someone from a position of power or authority, often used metaphorically to describe a shift in status or priority.

Academic Superiority

The state or condition of excelling in academic performance, often leading to recognition and accolades within educational settings.