Because of the Compounding Effect

question 230

Multiple Choice

Because of the compounding effect

• A) people with high credit scores often have difficulty obtaining loans.
• B) people with low credit scores often have difficulty obtaining loans.
• C) a small loan balance becomes large.
• D) a large loan balance becomes smaller.

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Definitions:

Cannon-Bard Theory

A theory of emotion that posits emotions and physiological reactions occur simultaneously and independently.

Schachter Two-factor Theory

A psychological theory which proposes that emotions are comprised of two factors: physiological arousal and cognitive label.

Common Sense Theory

An approach suggesting that people naturally form theories about their experiences and the world around them, based on everyday observations and practical reasoning.

Autonomic Arousal

The activation of the autonomic nervous system, which regulates involuntary body functions and is often associated with stress or excitement.