What Does the Cohort Effect Describe

question 201

Multiple Choice

What does the cohort effect describe?

• A) why members of the same psychographic group decide to vote the same way
• B) how Generation X uses its financial power to influence product trends
• C) the predictability of demographic characteristics in analyzing purchase habits, as well as product-usage rates, and brand preference
• D) the tendency of members of a generation to be influenced and bound together by events occurring during the key formative years

---

Definitions:

Discount Rate

The interest rate charged to commercial banks and other financial institutions for the loans they take from the central bank or Federal Reserve.

Depository Institutions Deregulation

This involves removing or loosening government restrictions on banks and other financial institutions to allow for greater efficiency and competition.

Monetary Control Act

A United States federal law enacted in 1980 aimed at improving the Federal Reserve's control over the monetary supply and interest rates.

Thrift Institutions

Financial organizations focused on savings and mortgage lending, including savings and loan associations, credit unions, and savings banks.