Which of the Following Concerns Were Raised as a Result

question 23

Multiple Choice

Which of the following concerns were raised as a result of record low interest rates in 2012?

• A)high perceived risk of default
• B)high interest rate risk
• C)corporations facing a lack of demand for bonds
• D)high risk premiums on investment-grade corporate bonds

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Definitions:

Extinction

In psychology, the gradual weakening and eventual disappearance of a learned response, often occurring when the reinforcement previously associated with the behavior is removed.

Stimulus Generalization

A process in which a response to a specific stimulus becomes associated to other stimuli that are similar, leading to a similar response.

Spontaneous Recovery

The reappearance of a conditioned response after a pause or period of apparent extinction.

Principle of Spontaneous Recovery

The reappearance of a previously extinguished response after a period of no exposure to the conditioned stimulus, often observed in classical conditioning.