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Fernando Doesn't Cut in Line,raises His Hand in Class Before

question 4

Multiple Choice

Fernando doesn't cut in line,raises his hand in class before talking,and stops his car at stop signs on the road.He focuses on conventional rules that have been established by social consensus in order to control behavior and maintain the social system.Which of the following BEST describes Fernando's reasoning?


Definitions:

Treasury Bills

Short-term government securities with maturities of one year or less, sold at a discount and redeemed at face value at maturity.

Target Cash Balance

The optimal amount of cash that a company aims to hold to meet expected transactions, precautionary, and speculative needs.

Speculative Motive

The intent to hold cash or other assets for the purpose of benefiting from future market movements.

Precautionary Motive

The desire to hold cash or liquid assets to guard against unforeseen future needs and emergencies.

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