Mr and Mrs

question 115

Multiple Choice

Mr. and Mrs. Laughern are very nurturing parents, but they make few maturity demands on their children, exercise a low level of control, and do not communicate very much with them. Baumrind would label the Laugherns as

• A) authoritarian.
• B) authoritative.
• C) neglecting.
• D) permissive.
• E) rejecting.

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Definitions:

Interest Rate Price Risk

The risk that the value of an investment will decrease due to a change in interest rates.

Zero Coupon Bond

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

Reinvestment Rate Risk

The risk that cash flows from an investment will be reinvested at a lower interest rate than the original investment rate, affecting future returns.

Coupon Bond

A type of bond that pays the holder a fixed interest payment (coupon) at regular intervals until the maturity date, at which point the principal is repaid.