Elena Finds It Very Difficult to Remember a Long String

question 37

Multiple Choice

Elena finds it very difficult to remember a long string of numbers, so she tries to memorize three numbers at a time. Later, she is able to repeat the numbers correctly because she grouped the numbers into more manageable groups of three. This is an example of ________.

• A) chunking
• B) elaborative rehearsal
• C) a mnemonic device
• D) persistence

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Definitions:

Default Risk

The risk of loss to a lender from the borrower’s failure to pay the full amount due including interest and principal.

Commercial Paper

An unsecured, short-term debt instrument issued by corporations, typically used for the financing of accounts receivable, inventories, and meeting short-term liabilities.

Bank Loan

A sum of money lent by a bank to a borrower at an interest rate, which is to be repaid with interest according to the terms of the loan agreement.

Interest Rate

The percent of principal charged by the lender for the use of its money.