If a One-Year Bond Is Purchased for $700 and the Interest

question 36

Multiple Choice

If a one-year bond is purchased for $700 and the interest rate is 5 percent, what will it pay in one year?

• A) $35
• B) $665
• C) $735
• D) $770

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Definitions:

Outgroup

A term denoting any group you do not belong to or identify with, often perceived less favorably than one’s own group (ingroup).

Comparison

The act of evaluating two or more items, people, or situations to identify similarities, differences, or to ascertain superiority.

Uncertainty-Identity Theory

A social psychological theory suggesting that people join and identify with groups in order to reduce feelings of uncertainty about themselves and the world.

Social Identity Processes

The mechanisms through which individuals develop and maintain their social identity, including categorization, identification, and comparison with other groups.