Why Do the Authors of Your Textbook Reject Definitions of Family

question 21

Multiple Choice

Why do the authors of your textbook reject definitions of family that depend on particular types of people (like parents) and specific types of ties (like marriage) ?

• A) They believe that the nuclear family remains the most important prototype for a family.
• B) They want the definition to be broad enough to encompass a variety of living arrangements.
• C) They believe that in the future more families will consist of two sets of parents with children.
• D) They argue that it is important to limit the definition of families so that families can be discussed with clarity.

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Definitions:

Compensating Balances

Minimum account balances that a borrower must maintain as part of a lending agreement, often used to offset a portion of the bank's cost in providing the loan.

Effective Interest Rate

The actual interest rate earned or paid on an investment, loan, or financial product, taking into account the effects of compounding over a given period.

Loan

A financial agreement where a borrower receives a specific amount of money from a lender and is obligated to repay it back with interest over a predetermined period.

Maturity Matching

A strategy in finance where the duration of investments in assets is matched with the duration of liabilities or obligations, aiming to reduce financial risk.