Deciding the Likelihood of an Event Based on How Much

question 159

Multiple Choice

Deciding the likelihood of an event based on how much it resembles the "typical" example of that event is known as the _____ heuristic.

• A) representativeness
• B) availability
• C) better-than-average
• D) outlier

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Definitions:

Idle Cash

Cash that is not currently invested or used in transactions, often earning minimal or no interest.

Cash Management

Cash management is the process of collecting, managing, and investing a company's cash flow in order to meet its operational expenses and maintain liquidity.

Liquidity Management

The practice of managing assets and liabilities in such a way that an individual or firm can meet its short-term obligations.