The Year Is 2016 and One Is Listening to a Newscast

question 44

Multiple Choice

The year is 2016 and one is listening to a newscast about September 11, and a friend is trying to remember who told him about the event since he wasn't near a television to see it. What area of the brain would be activated as the friend attempts to remember?

• A) the orbital prefrontal cortex
• B) the medial prefrontal cortex
• C) the ventrolateral prefrontal cortex
• D) the dorsolateral prefrontal cortex

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Definitions:

Convexity

An indicator of how the bond price's sensitivity to interest rate changes varies with the bond's yield, reflecting adjustments in the bond's duration.

Basis Points

A unit of measure used in finance to describe the percentage change in the value or rate of a financial instrument.

Duration Mismatch

The disparity between the sensitivity of asset prices and liability values to changes in interest rates, affecting firms and financial institutions' balance sheets.

S&P 500

A market index representing 500 of the largest companies listed on American stock exchanges.