On the Campus of the University of Minnesota, There Are

question 97

Multiple Choice

On the campus of the University of Minnesota, there are signs near large expanses of grass that read, "Lie on me, play on me, but please don't walk on me." These signs are more likely to protect the grass than signs that read, "Stay off the grass!" because the Minnesota signs __________.

• A) are likely to generate less psychological reactance
• B) contain a longer persuasive message
• C) contain an emotional appeal rather than a logical appeal
• D) contain a logical appeal rather than an emotional appeal

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Definitions:

Nominal Rate

The stated interest rate of a loan or financial product, not adjusted for inflation or other factors that affect the real rate of return.

Effective Rate

The actual interest rate earned or paid on an investment, loan, or other financial product, taking into account the effect of compounding.

Compound Interest

This refers to the calculation of interest on the original amount of money deposited or borrowed as well as on the interest that has already accumulated over previous periods.

Zero-Coupon Bonds

Bonds that do not pay periodic interest payments and are sold at a significant discount from their face value, with the profit being the difference between the purchase price and the bond's face value at maturity.