With a Floating- Rate Note, the Interest Rate on the Note

question 18

Multiple Choice

With a floating- rate note, the interest rate on the note changes

• A) when bank profits change.
• B) when the risk level of the borrower changes.
• C) when the prime rate changes.
• D) when the demand for loans changes.

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Definitions:

Punishment

A consequence imposed after an undesirable behavior, aimed at reducing that behavior.

Negative Reinforcement

A behavioral concept where the removal of an unfavorable event strengthens the behavior that led to its removal.

Extinction

In the context of behavior, the gradual reduction and eventual elimination of a conditioned response.

Successive Approximations

This is a method in behavioral psychology where behaviors are gradually trained by rewarding approximations of the desired behavior.