If You Feel Interest Rates Are Going to Drop Significantly

question 52

True/False

If you feel interest rates are going to drop significantly, you could potentially realize large capital gains by purchasing long-term zero coupon bonds prior to the rates decreasing.

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Definitions:

Classical Conditioning

An educational method where two stimuli are consistently linked together, leading to a response initially triggered by the second stimulus but later induced by the first stimulus alone.

Operant Conditioning

A learning process in which the consequences of an action determine the likelihood of that action being repeated in the future.

Observational Learning

Acquiring knowledge by watching the actions of other people.

Implicit Learning

The process of learning complex information in an incidental manner, without awareness of what has been learned.