A Punishment or Cost Is a Stimulus That

question 2

Multiple Choice

A punishment or cost is a stimulus that

• A) is unpleasant
• B)decreases the probability of behavior
• C) is pleasant
• D) is delivered by authority figures (e.g., police)
• E) comes before the behavior

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Definitions:

Interest Accrual

The process by which interest is accumulated over time on borrowed funds, to be paid at a later date.

Redemption

The process of paying off or buying back a security, such as a bond, at its face value or at a specified price before maturity.

Effective-Interest Amortization

A method of calculating the amortized cost of a bond or loan based on the periodic interest rate applied to the carrying amount, resulting in an equal interest expense over the period.

Bonds

Fixed-income investments representing loans to borrowers such as corporations or governments, paid back with interest over time.