Which of the Following Is Not an Assumption of Traditional

question 15

Multiple Choice

Which of the following is not an assumption of traditional finance?

• A)You are assumed to act logically all the time in seeking to maximize your pleasure
• B)You have perfect knowledge of all the information you need to make proper decisions
• C)You have full capability for recalling past experiences accurately
• D)You also have the intellectual capacity to make the right decisions at all times
• E)All of the above are assumptions of traditional finance

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Definitions:

Pure Communism

An idealized form of communism where there is no class division, the state has withered away, and the means of production are communally owned, leading to equal distribution of resources.

Capitalism

An economic system where private individuals rather than the state own and operate the means of production and distribution, driven by the motive of profit.

Socialism

An economic system based on the collective ownership of the means of production, collective distribution of goods and services, and government regulation.

Cultural Capital

The tastes, habits, expectations, skills, knowledge, and other cultural assets that help us gain advantages in society.