Which Drive in Four-Drive Theory Is Reactive Rather Than Proactive

question 134

Multiple Choice

Which drive in four-drive theory is reactive rather than proactive?

• A)Drive to acquire
• B)Drive to learn
• C)Drive to defend
• D)Drive to bond
• E)Drive for power

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Definitions:

Coupon Rate

The annual interest rate paid by a bond, expressed as a percentage of the bond's face value, determining the periodic interest payments to bondholders.

Par-Value

The nominal or face value of a bond or stock, as stated by the issuer.

Duration

A measure of the sensitivity of a bond’s price to changes in interest rates, expressed as the weighted average time to receive the bond's cash flows.

Macaulay Duration

A measure of the weighted average time until a fixed income asset's cash flows are received, used to assess interest rate risk.