Which of the Following Is Not an Example of a Compensating

question 121

Multiple Choice

Which of the following is not an example of a compensating differential? Job A pays more than Job B because Job A requires

• A)more international travel to dangerous locations.
• B)two night shifts per month.
• C)careful handling of toxic chemicals.
• D)an advanced degree.

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Definitions:

Annual Rate

Annual rate, often used in the context of loans and investments, refers to the percentage that signifies the yearly cost of funds or the yearly return on investment.

Annual Rate

Typically refers to the interest rate for a whole year, as opposed to a shorter period, on a loan, investment, or deposit.

Borrowed

Refers to funds or resources obtained temporarily from another party, usually with the promise of repayment plus interest.

Final Payment

The last installment paid in a series of payments, concluding the payment obligation under a financial agreement.