Newborns' Bias Toward _____ Is an Underlying Factor in Their

question 122

Multiple Choice

Newborns' bias toward _____ is an underlying factor in their attraction to human faces.

• A) oval-shaped objects
• B) arrangements with more elements in the upper half than in the lower half
• C) objects with irregularities around the perimeter
• D) configurations with some dark elements and some light elements

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Definitions:

Substitution Swap

A Substitution Swap is a strategy in fixed-income markets where an investor exchanges one bond for another with similar features but more attractive terms.

Interest Rate Risk

The risk of losing value in an investment due to a change in interest rates, affecting both bonds and loans.

Long-Duration Bonds

Bonds with a longer time until maturity, typically more than 10 years, making them more sensitive to changes in interest rates.

Duration Rule

A principle that estimates the sensitivity of a bond's price to changes in interest rates, calculated as the weighted average time until a bond's cash flows are received.