Which One of the Following Statements Is Correct Concerning the Time

question 35

Multiple Choice

Which one of the following statements is correct concerning the time value of money?

• A) The future value of $1 at the end of a year is equal to $1 times 1 plus the annual interest rate.
• B) As the interest rate increases for any given year, the future value interest factor will decrease.
• C) The future value of $1 decreases with the passage of time.
• D) The future value interest factor is equal to zero if the interest rate is zero.

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Definitions:

Generalization Gradient

The generalization gradient is a measure of the degree to which learned behavior is exhibited in response to stimuli that are similar but not identical to the conditioned stimulus.

Conditioned Fear

A learned response where a neutral stimulus begins to elicit fear after being paired with an aversive event.

Behavioral Contrast

A phenomenon observed in operant conditioning where a change in the reinforcement conditions for one behavior alters the rate of another behavior.