A Psychologist Tells Children a Story in Which a Puppet

question 199

Multiple Choice

A psychologist tells children a story in which a puppet named Maxi puts a ball in one cupboard and then leaves the room.While she is gone,another puppet moves the ball to another cupboard.Then Maxi comes back.At this point,the psychologist asks the children in which cupboard will Maxi look for the ball? Most 6-year-olds probably will say the _____ cupboard,and most 8-year-olds will say the _____ cupboard.

• A)first;first
• B)first;second
• C)second;first
• D)second;second

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Definitions:

Option Price

The price at which the holder of an option contract can buy (in the case of a call option) or sell (in the case of a put option) the underlying asset or security.

Issuance of Stock

The process by which a company distributes its shares to investors, thereby raising capital.

Formal Journal Entry

A written record in the books of accounts that documents a business transaction systematically.

Stock Warrants

A form of derivative that gives the holder the right, but not the obligation, to buy a company's stock at a specific price before the warrant expires.