If the Cost of Going to the ATM Is $2

question 12

Multiple Choice

If the cost of going to the ATM is $2 and the nominal interest rate is 1 percent, someone who has a 9 percent probability of having his cash lost or stolen and spends $15 each day will go to the ATM once in every ____ days approximately.

• A)25
• B)31
• C)37
• D)43

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Definitions:

Centralization

The process of concentrating control and decision-making authority in a central organization, location, or group of individuals.

Formalization

Pertains to the extent to which rules, procedures, instructions, and communications are written down and standardized within an organization.

Specialization

Specialization is the process of focusing on and becoming an expert in a particular subject or skill.

Standardization

The process of implementing and developing technical standards to ensure consistency, reliability, and safety in products, services, or systems.