If a Person Tends to Exaggerate the Extent of a Loss

question 122

Multiple Choice

If a person tends to exaggerate the extent of a loss, which heightens his or her emotional reaction, this is called

• A)catastrophizing.
• B)conflictualizing.
• C)delusional thinking.
• D)none of these.

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Definitions:

Basis Points

A unit of measure used in finance to describe the percentage change in the value or rate of a financial instrument, equal to 1/100th of a percent.

Corporate Bond

A debt security issued by a corporation to raise funds, promising to pay back the principal along with interest at a specified rate and schedule.

Yield To Maturity

The total return anticipated on a bond if it is held until its expiration date.

Par Value

The nominal face value of a bond or stock as stated by the issuer, often used to determine interest payments.