An Example of How Financial Intermediaries Can Assist in Shifting

question 58

Multiple Choice

An example of how financial intermediaries can assist in shifting an individual's consumption forward in time is:

• A)Providing a line of credit.
• B)Opening a passbook account.
• C)Starting a life insurance policy.
• D)Investing in an index fund.

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Definitions:

Statistical Analysis

The process of collecting, reviewing, and interpreting data to discover patterns and significance in the collected information.

Positive Reinforcement

A concept in behavioral psychology where the introduction of a desirable or pleasant stimulus after a behavior increases the likelihood of that behavior occurring in the future.

Negative Reinforcement

A behavior modification technique where the removal of an undesirable or unpleasant stimulus strengthens a desired behavior.

Operant Conditioning

A learning process in behavioral psychology where the strength of a behavior is modified by reinforcement or punishment.