Audrey Thomas-Alexander Is Asked to Make a Contribution to United

question 81

Multiple Choice

Audrey Thomas-Alexander is asked to make a contribution to United Way.She asks the amount other people are giving and ends up giving that amount.She has used the _____ tool of influence.

• A) reciprocation 
• B) commitment and consistency 
• C) social proof 
• D) liking 
• E) scarcity

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Definitions:

Present Value

A payment’s economically equivalent amount at a prior date, allowing for the time value of money.

Compounded Annually

Describes the process of calculating interest on both the initial principal and the accumulated interest from previous periods once a year.

Present Value

The present value of a future amount of money or series of cash flows using a predetermined rate of return.

Perpetuity

A financial term for a stream of cash payments that continue indefinitely.