The Primary Risk Associated with a Short-Term Investment Is

question 54

Multiple Choice

The primary risk associated with a short-term investment is

• A) purchasing power risk.
• B) default risk.
• C) interest rate risk.
• D) economic risk.

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Definitions:

Vicarious Conditioning

Learning that occurs by observing the reactions of others to an environmental stimulus, rather than through direct experience.

Spontaneous Recovery

A phenomenon in psychology where previously extinguished responses reappear after a period of no exposure to the conditioned stimulus.

Superstitiously

In a manner that is based on or shows a belief in superstitions, which are beliefs or practices resulting from ignorance, fear of the unknown, trust in magic or chance, or a false conception of causation.

Stimulus Generalization

The tendency for the conditioned stimulus to evoke similar responses after the response has been conditioned.