The Type of Behavior That Does Not Require Learning or Experience

question 44

Multiple Choice

The type of behavior that does not require learning or experience to be performed correctly is:

• A)Innate behavior
• B)Dominant behavior
• C)Recessive behavior
• D)Imprinting
• E)Habituation

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Definitions:

Maturity Risk Premium

The additional interest rate or yield that investors demand to hold longer-maturity debt over shorter-term instruments.

Lenders

Individuals or institutions that provide funds to borrowers under the agreement that the funds will be repaid with interest.

Interest Rate Model

A mathematical model used to forecast future interest rates or to price financial derivatives and manage interest rate risk.

Default Risk Premium

The additional amount a borrower must pay to compensate the lender for assuming the risk of default.