Chapter 1 Discusses Ten Principles That Form the Foundation of Personal

question 38

Multiple Choice

Chapter 1 discusses ten principles that form the foundation of personal finance. The principle that considers the fact that one expects to earn additional return for increasing investment risk is the ________ principle.

• A) risk and return go hand in hand
• B) mind games and your money
• C) nothing happens without a plan
• D) the best protection is knowledge

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Definitions:

Conditioned Stimulus

Within classical conditioning, an initially neutral stimulus becomes linked with an unconditioned stimulus and ultimately elicits a conditioned response.

Neutral Stimulus

In conditioning, a stimulus that initially elicits no specific response other than focusing attention, which can eventually elicit a conditioned response when paired with an unconditioned stimulus.

Unconditioned Response

A natural, unlearned reaction to an unconditioned stimulus, part of classical conditioning theory.

Unconditional Reinforcement

A form of reinforcement in operant conditioning that is given consistently every time a desired response is made.