If You Know How to Wrap a Present, You Can

question 74

Multiple Choice

If you know how to wrap a present, you can probably describe the process to someone else. But if you know how to skip rope, you may have difficulty explaining what you do to someone else. The difference between these two kinds of knowledge can best be characterized as a difference between:

• A) explicit vs. implicit memory
• B) declarative vs. procedural knowledge
• C) things learned through deep vs. shallow processing
• D) things learned through the visuospatial sketchpad vs. through the phonological loop

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Definitions:

Zero-coupon Bond

A bond that does not pay interest during its life but is sold at a deep discount from its face value and pays its face value at maturity.

Yield To Maturity

The total return anticipated on a bond if it is held until it matures, including all interest payments and capital gains or losses.

Par Value

The face value of a bond or stock, representing the amount that the issuer agrees to pay at maturity or the value assigned to a stock for accounting purposes, respectively.

Matures

Refers to the final payment date of a loan or other financial instrument, at which point the principal (and all remaining interest) is due to be paid.