The Process of Activating and Directing Behavior Designed to Maintain

question 109

Multiple Choice

The process of activating and directing behavior designed to maintain equilibrium is known as

• A) motivation.
• B) homeostasis.
• C) drive.
• D) tension

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Definitions:

Carrying Cost

The total cost of holding inventory, including storage, insurance, taxes, and opportunity costs, over a certain period.

Credit

An arrangement wherein a borrower receives something of value now and agrees to repay the lender at a later date, usually with interest.

Graphically

Refers to representing data or models visually using graphs or charts.

Spread

Compensation to the underwriter, determined by the difference between the underwriter’s buying price and offering price. Also, the gap between the interest rate a bank pays on deposits and the rate it charges on loans.