When Seeking Out Information on a New Product,consumers Tend to Trust

question 71

Multiple Choice

When seeking out information on a new product,consumers tend to trust _________ over _________.

• A) corporations,other consumers
• B) other consumers,corporations
• C) their neighbors,online reviews
• D) online reviews,printed reviews
• E) television infomercials,websites

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Definitions:

Interest Rates

The cost of borrowing money or the return on invested capital, expressed as a percentage rate over a period of time, typically one year.

Zero-Coupon Bond

A bond that does not pay periodic interest but is issued at a discount from its face value, and its return comes from the difference between the purchase price and the face value paid at maturity.

Investment Horizon

Investment Horizon denotes the period an investor expects to hold an investment before taking any return out of it.

Interest Rate Risk

The risk that the value of an investment will decrease due to a rise in interest rates, affecting especially interest-bearing assets like bonds.