When Managers Cannot Assign Probabilities of Future Occurrence to Possible

question 84

Multiple Choice

When managers cannot assign probabilities of future occurrence to possible alternatives to a decision,this is known as:

• A)Certainty
• B)Risk
• C)Bounded rationality
• D)Uncertainty
• E)Satisficing

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Definitions:

Tokyo Interbank Rate

The interest rate at which banks lend to each other in the Tokyo money market, similar to LIBOR in London.

Euribor

The interest rate at which banks lend to each other in euros within the Euro interbank market.

Par Value

The face value of the bond. The payment to the bondholder on the bond’s maturity date.

Ask Price

The lowest price a seller is willing to accept for an asset in the market.