If a Checking Account Has an Interest Rate of 1

question 272

Multiple Choice

If a checking account has an interest rate of 1% and a Treasury bill has an interest rate of 2%, the opportunity cost of holding the checking account as money is:

• A) zero.
• B) 0.02%.
• C) 1%.
• D) 2%.

---

Definitions:

Extensive Decision Making

Decision-making characteristic of buyers who are unfamiliar with a specific product and who must therefore become highly involved in the decision-making process.

Trial Close

A technique used in sales to gauge a potential customer's interest or likelihood of making a purchase before the deal is finalized.

High-involvement

A term referring to situations or purchase decisions where the consumer spends a lot of time and effort considering and making the decision due to the significance of the outcome.

Routine Decision Making

The process of being in the habit of buying a particular product so attitudes and beliefs toward the product are already formed and are usually positive.