You Are Deciding Among Several Different Bank Accounts

question 116

Multiple Choice

You are deciding among several different bank accounts. Which of the following will generate the highest effective annual rate (EAR) ?

• A)A 6 percent rate with monthly compounding
• B)A 6 percent rate with annual compounding
• C)A 6.08 percent rate with annual compounding
• D)A 6 percent rate with quarterly compounding

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Definitions:

Unconditioned Stimulus

An unconditioned stimulus is a stimulus that automatically triggers a reflexive response without any prior learning or conditioning.

Discrimination

Unjust or prejudicial treatment of different categories of people, especially on the grounds of race, age, or sex.

Generalization

The process in learning where a response to a specific stimulus is extended to include responses to similar stimuli.

Biological Preparedness

The concept that certain associations are learned more readily than others due to evolutionary predispositions.