Which Argument Best Represents the Research on the Consequences of Divorce

question 12

Multiple Choice

Which argument best represents the research on the consequences of divorce on children?

• A)Divorce is a better option for children when a marriage has severe conflict.
• B)Divorce is a better option even if there is low-level conflict because children pick up on the stress.
• C)Children of divorced parents have no greater risk of negative outcome so it makes no difference.
• D)Children do better when they have both parents in the home regardless of the level of conflict because it gives them stability and more trust in their environment.

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Definitions:

Maturity Risk Premium

The additional interest rate or yield that investors demand to hold longer-maturity debt over shorter-term instruments.

Lenders

Individuals or institutions that provide funds to borrowers under the agreement that the funds will be repaid with interest.

Interest Rate Model

A mathematical model used to forecast future interest rates or to price financial derivatives and manage interest rate risk.

Default Risk Premium

The additional amount a borrower must pay to compensate the lender for assuming the risk of default.