In Order to Take Advantage of the Time Value of Money

question 39

Multiple Choice

In order to take advantage of the time value of money you should do all of the following, except

• A) pay bills electronically so you can delay payments and still ensure on-time payment.
• B) pay bills a little later than the due dates to take advantage of month-ending interest on your savings account.
• C) use settings on many bill-paying Web sites that allow you to set a future date for payment once you receive a bill.
• D) make use of your money while you have it, but always make payments by the due dates.

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Definitions:

Behavior Modification

A method of therapy rooted in operant conditioning principles, which aims to substitute negative behaviors with positive ones using either rewards or penalties.

Classical Conditioning

The procedure of learning through continual pairing of two stimuli; a behavior that initially results from the second stimulus later results from only the first stimulus.

Instinctive Drift

The inclination of an animal to return to innate behaviors that disrupt a learned reaction.

Extinction

The gradual weakening and eventual disappearance of a learned response.