At the Beginning of 2013,Joey Planned to Buy a New

question 184

Multiple Choice

At the beginning of 2013,Joey planned to buy a new iPhone,LCD TV,and motorcycle by borrowing money.Joey already owes $25,000 on other loans.He also planned to buy new clothing and DVDs out of current income.An increase in interest rates,during 2013,will most likely

• A)cause Joey to decide to borrow less money,but not change what he planned to spend on goods purchased with current income.
• B)cause Joey to decide to borrow more money and to spend more on goods purchased with current income.
• C)cause Joey to decide to borrow more money,but not change what he planned to spend on goods purchased with current income.
• D)cause Joey to decide to borrow less money and to spend less on goods purchased with current income.

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Definitions:

Job Evaluation

A systematic process for assessing the relative worth of jobs within an organization to establish fair compensation.

Benchmark Jobs

Positions within an organization used as a standard or comparison point for determining the value of other jobs and setting salary levels.

Market Comparisons

The process of comparing an organization's compensation levels, benefits, and job functions to similar positions in other companies within the same industry to establish competitive salaries.

Broad Banding

A method of salary structure that consolidates a large number of pay grades into fewer, wider ranges to offer greater flexibility in managing employee career progression.