Taye Is Trying to Buy Something Over the Phone

question 164

Multiple Choice

Taye is trying to buy something over the phone. He asks his partner to read him his credit card number. However, when he tries to repeat it to the salesclerk on the other end of the line, he can't remember all the numbers. Taye is coming up against __________.

• A) the decay of numerical memory
• B) the extinction of auditory traces
• C) George Miller's magic number seven, plus or minus two
• D) the limits of procedural memory

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Definitions:

Current Ratio

A ratio indicating the capability of a company to cover its obligations that are due in less than one year, calculated through the division of its current assets by its current liabilities.

Short-Term Creditors

Short-term creditors are lenders or suppliers to whom a company owes money that is due to be paid back within a short period, typically within one year.

Liquidity

A measure of how easily assets can be converted into cash without significant loss of value.