People Are Most Likely to Be Consistent with Their Previous

question 44

Multiple Choice

People are most likely to be consistent with their previous commitments when

• A) they have made the commitment in order to obtain an external reward.
• B) they were forced to make the commitment.
• C) the commitment is made privately rather than publicly.
• D) the commitment is made through action rather than a failure to act.

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Definitions:

Variable Life

A type of life insurance policy that includes an investment component, where the cash value and death benefit can vary based on the performance of the investments.

Universal Life

A flexible premium life insurance policy that combines protection with a cash value accumulation that earns interest.

Social Constraint

Limitations or restrictions on behavior that are enforced by social or cultural norms.

Investment Policy Statement

A document that outlines an investor’s objectives, risk tolerance, time horizon, and investment constraints, guiding the investment decisions and strategies.