Use the Information to Answer the Following Question(s)

question 15

Multiple Choice

Use the information to answer the following question(s) .
Jackson Automotive Inc. of California agrees to sell specialized automotive parts to Hidatsi of Korea. Because the two companies have never done business with each other, Jackson requires a banker's acceptance as payment for the $1,000,000 order. The banker's acceptance carries a 1.4% commission per annum and payment is to be received in 6 months. If Jackson Inc. chooses to discount or sell the bankers acceptance to its bank, the discount rate is 1.00% per annum.
-Refer to Instruction 22.1. What is the size of the commission Jackson Automotive will pay the bank for the banker's acceptance?

• A)$7,000
• B)$5,000
• C)$12,000
• D)$14,000

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Definitions:

Confabulation

The production of fabricated, distorted, or misinterpreted memories about oneself or the world, without conscious intention to deceive.

Priming

A psychological phenomenon in which exposure to one stimulus influences the response to a subsequent stimulus, without conscious guidance or intention.

Long-term Potentiation

A long-lasting increase in signal transmission between two neurons that results from their simultaneous activation, often considered a cellular mechanism for learning and memory.

Deep Processing

A method of learning in which information is analyzed in a meaningful way as opposed to merely memorized.