The Automatic System Is to ____ as the Deliberate System

question 30

Multiple Choice

The automatic system is to ____ as the deliberate system is to ____.

• A)life-sustaining; life-enhancing
• B)intuition; reasoning
• C)planned; spontaneous
• D)mental; physical

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Definitions:

Interest Rate Sensitive

Pertaining to assets or investments that are affected by changes in interest rates.

Treasury Bills

Short-term government securities with maturities of one year or less, sold at a discount and redeemed at face value at maturity.

Target Cash Balance

The optimal amount of cash that a company aims to hold to meet expected transactions, precautionary, and speculative needs.

Speculative Motive

The intent to hold cash or other assets for the purpose of benefiting from future market movements.