Suppose You Are Accustomed to Driving a Car in Which

question 47

Multiple Choice

Suppose you are accustomed to driving a car in which the switch for the windshield wipers is located to the left of the steering wheel. Then you borrow a friend's car. To use the wipers on this car, you must activate the switch to the right of the steering wheel, but you keep reaching toward the left. You are demonstrating

• A) proactive interference.
• B) the phonological loop.
• C) the effects of "magical number seven."
• D) a real-life version of the Brown/Peterson & Peterson test of memory.

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Definitions:

Market Rate

The current interest rate offered in the market for instruments with similar risk and maturity levels.

Present Value Factor

A financial calculation used to determine the present value of a sum of money to be received in the future by accounting for time value of money.

Issue Price

The price at which new shares are offered to the public by a corporation during an issuance.

Effective-interest Amortization

A method of amortizing the premium or discount on bonds payable that reflects the periodic interest expense based on the bond's carrying value.