Who Is Most Likely the Formal Operational Thinker

question 8

Multiple Choice

Who is most likely the formal operational thinker?

• A) Kula, who thinks nickels are worth more than dimes because they are bigger
• B) Fran, who has just mastered conservation
• C) Ollie, who is capable of using and understanding symbols
• D) Sherri, who can use combinatorial reasoning

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Definitions:

Compensating Balance

A minimum account balance that a borrower must maintain as part of a condition for obtaining a loan.

Line of Credit

A flexible loan from a bank or financial institution that allows a borrower to draw and use funds up to a designated limit.

Field Warehouse

A storage facility that is used to store goods that are under the control of a financing company until the loan secured by those goods is repaid.

Loan Against Inventory

A type of financing where a loan is given to a company based on the value of its inventory which serves as collateral.