Use Estimation to Select the Best Response

question 59

Multiple Choice

Use estimation to select the best response. Do not calculate. Which of the following is less probable?

• A) Obtaining a five at least 2 times in 3 rolls of a die
• B) Obtaining a five 2 times in 3 rolls of a die
• C) They are equally probable

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Definitions:

Float Motive

The rationale for holding money in transaction accounts to satisfy daily operational cash flow needs.

Liquidity

The ease with which an asset or security can be converted into cash without affecting its market price.

Long-term Maturities

Refers to debt securities or loans with repayment periods typically exceeding one year, often associated with bonds or long-term loans.

Money Market

is a segment of the financial market where short-term financial instruments and securities are traded, offering liquidity and lower risk.