In the Store Model of the Information-Processing System, We Use

question 55

Multiple Choice

In the store model of the information-processing system, we use mental strategies to

• A) direct the flow by coordinating information coming from the environment with information already in the system.
• B) refer to networks of concepts and relations that permit us to think about a wide range of situations in more advanced ways.
• C) prevent internal and external distracting stimuli from capturing our attention and cluttering working memory with irrelevant information.
• D) operate on and transform information, increasing the chances that we will retain it, use it efficiently, and think flexibly.

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Definitions:

Cost of Debt

The effective rate that a company pays on its current debt, which can include loans, bonds, and any other interest-bearing liabilities.

Market Risk Premium

The extra return expected by investors for holding a risky market portfolio instead of risk-free assets, reflecting the additional risk.

Dividend

The payment made by a corporation to an equity investor (stockholder).

Cost of Equity

The return a company requires to decide if an investment meets capital return requirements, often used in capital budgeting to evaluate potential investments.