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Financial Institutions Advertise Their Loan Interest Rates in What Is

question 23

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Financial institutions advertise their loan interest rates in what is referred to as an annual loan plan, or ALP.


Definitions:

Reinforcement

In behavioral psychology, it refers to any stimulus which strengthens or increases the probability of a specific response.

Unpleasant Stimulus

A stimulus that is generally undesirable or disagreeable to an individual, often leading to avoidance behavior.

Punishment

Any event or object that, when following a response, makes that response less likely to happen again.

Positive Reinforcement

The reinforcement of a response by the addition or experiencing of a pleasurable stimulus.

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