Present Value Is

question 114

Multiple Choice

Present value is:

• A)how much a certain amount of money that will be obtained in the future is worth today.
• B)how much a certain amount of money that you have in the present will be worth in the future.
• C)the process of accumulation of additional interest paid on interest that has already been earned.
• D)needs to be discounted to be meaningful.

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Definitions:

Drive-Reduction Theory

A psychological concept proposing that the motivation of behavior is the reduction of drives, which are primarily biological needs that trigger arousal.

Aroused State

A condition of heightened physiological and psychological activity, with increased heart rate, alertness, and energy, often triggered by excitement or stress.

Unlearned Behavior

Innate actions or reactions not influenced by conditioning or learning; instinctive behavior.

Homeostatic Mechanism

Biological processes that maintain stability and equilibrium within an organism's internal environment.