What Is the Primary Function of Finance Companies

question 73

Multiple Choice

What is the primary function of finance companies?

• A)Protect individuals and corporations from adverse events.
• B)Make loans to both individuals and corporations.
• C)Extend loans to banks and other financial institutions.
• D)Pool the financial resources of individuals and companies and invest in diversified portfolios of assets.
• E)Assist in the trading of securities in the secondary markets.

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Definitions:

Primary Reinforcers

Innate reinforcing qualities such as food, water, and relief from pain, which fulfill basic biological needs and do not require learning to be effective.

Unlearned Reinforcer

An unlearned reinforcer, also known as a primary reinforcer, is a stimulus that naturally and intrinsically provides reinforcement or a favorable outcome without the need for learning.

Primary Reinforcer

A primary reinforcer is a stimulus that satisfies basic survival needs without prior learning; examples include food, water, and shelter.

Conditioned Reinforcer

A stimulus that gains its reinforcing power through its association with a primary reinforcer; also known as a secondary reinforcer.