Financial Markets Have the Basic Function of

question 11

Multiple Choice

Financial markets have the basic function of

• A)getting people with funds to lend together with people who want to borrow funds.
• B)assuring that the swings in the business cycle are less pronounced.
• C)assuring that governments need never resort to printing money.
• D)providing a risk-free repository of spending power.

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Definitions:

Unconditioned Stimulus

In classical conditioning, an unconditioned stimulus is something that naturally and automatically triggers a response without any learning needed, such as food causing salivation in dogs.

Unconditional Statement

A statement or proposition that is true or asserted without any conditions or limitations.

Classical Conditioning

A training approach involving the regular pairing of two cues, where a response originally provoked by the second cue becomes triggered by only the first cue over time.

Instrumental Learning

A learning process that uses rewards and punishments to promote or discourage a behavior, also known as operant conditioning.