Which of the Following Statements Is INCORRECT

question 63

Multiple Choice

Which of the following statements is INCORRECT?

• A)For most financial decisions, costs and benefits occur at different points in time.
• B)We refer to (1 - r_f)as the interest rate factor for risk-free cash flows.
• C)We define the risk-free interest rate (r_f)for a given period as the interest rate at which money can be borrowed or lent without risk over that period.
• D)In general, money today is worth more than money in one year.

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Definitions:

Behavior Consequence

The outcome or result of an action, which can either reinforce the behavior or deter it in the future.

Reinforcement

A psychological principle involving the use of rewards or punishments to increase or decrease the likelihood of a particular behavior.

Aversive Event

An unpleasant or undesirable occurrence that can lead to changes in behavior or psychological state.

Social Learning Theory

A theory that suggests people learn new behaviors through observational learning of others' actions and consequences.