John Gleason Is Interested in Purchasing a 46" Rear Projection

question 95

Multiple Choice

John Gleason is interested in purchasing a 46" rear projection TV for his living room.He knows that right now the TV will cost approximately $1500.John wants to borrow the money to purchase the TV but is a little concerned because he thinks interest rates are going to fall in the future.He is worried that he might get stuck with a loan at a high interest rate.What type of risk is John worried about?

• A)Inflation risk
• B)Interest rate risk
• C)Income risk
• D)Personal risk
• E)Liquidity risk

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Definitions:

Core Self-evaluations

A broad personality concept that consists of more specific traits like self-esteem, generalized self-efficacy, locus of control, and emotional stability.

Neuroticism

A characteristic of personality marked by fluctuations in emotions, nervousness, changeable moods, quick temper, and feelings of sorrow.

Negative Affectivity

A personality trait that involves the predisposition to perceive a wide range of events as threatening or problematic.

Proactive Personality

A stable personal disposition that reflects a tendency to take personal initiative across a range of activities and situations and to effect positive change in one’s environment.