Penelope Is Quite Talkative When She Is at Home with Her

question 89

Multiple Choice

Penelope is quite talkative when she is at home with her parents and siblings, but when faced with a new situation outside of the home, she is completely silent. Penelope likely has a condition known as:

• A)Selective mutism
• B)Social anxiety disorder
• C)Shyness
• D)Phonological disorder

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Definitions:

Default Risk Premium

The additional return that an investor demands for taking on the risk that the borrower may default on the loan.

Liquidity Risk Premium

An additional return that investors require for holding securities with less liquidity, compensating for the risk of not being able to sell quickly at the fair market price.

Inflation Rate

The speed at which the average price of goods and services increases, leading to a decrease in buying power.

Pure Rate

Pure rate, in finance, could refer to the actual interest rate without the influence of inflation or to the risk-free rate of return, which is the theoretical return of an investment with zero risk.