Which of the Following Statements About Source Credibility Is True

question 106

Multiple Choice

Which of the following statements about source credibility is true?

• A)High credibility sources are always more effective than low credibility sources.
• B)The use of a low credibility source is more effective when the audience has an unfavorable initial opinion or attitude on the issue.
• C)The persuasiveness of a low credibility source may decline over time due to the sleeper effect phenomenon.
• D)A low or moderately credible source may be more effective than a high credibility source when the receiver has a favorable initial attitude or opinion.
• E)None of the above statements about source credibility is true.

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Definitions:

Cash Flows

Cash flows refer to the net amount of cash and cash-equivalents being transferred into and out of a business.

NPV (Net Present Value)

A method used in capital budgeting to evaluate the profitability of an investment or project, calculated by subtracting the total present values of cash outflows from the total present values of cash inflows.

IRR (Internal Rate of Return)

A financial metric used to estimate the profitability of potential investments, calculated as the discount rate that makes the net present value (NPV) of all cash flows from a particular project equal to zero.

Discount Rate

The interest rate charged to commercial banks and other financial institutions for loans received from the central bank's discount window.