Which of the Following Observations Is True of a Spot

question 46

Multiple Choice

Which of the following observations is true of a spot loan?

• A)It involves a maximum size and a maximum period of time over which the borrower can withdraw funds.
• B)It involves immediate withdrawal of the entire loan amount by the borrower.
• C)It is an unsecured short-term debt instrument issued by corporations.
• D)It is a nonbank loan substitute.

---

Definitions:

Purely Rational Model

A decision-making perspective based on the assumption that individuals make choices that maximize benefits while minimizing costs, based on complete and accurate information.

Emotions

Complex psychological states that involve an experience, physiological response, and behavioral or expressive response.

Efficient

Achieving maximum productivity with minimum wasted effort or expense.

Groupthink

A phenomenon where the desire for harmony or conformity within a decision-making group leads to irrational or dysfunctional decision-making outcomes.