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:

Intuitive Thought

A cognitive process that creates immediate awareness or understanding without relying on reasoning or logical deduction.

Horizontal Décalage

A term from Piaget's theory of cognitive development, describing the variability in a child’s understanding and application of concepts across different situations.

Conservation

Understanding that physical properties do not change when appearance changes, crucial in cognitive development, repeating definition with emphasis on its role in cognitive science.

Preoperational Stage

A phase in Jean Piaget's cognitive development theory where children from ages 2 to 7 engage in symbolic play and struggle with logic and taking the perspective of others.