Relative Insensitivity to Delayed Rewards Helps Explain Why It Is

question 100

Multiple Choice

Relative insensitivity to delayed rewards helps explain why it is:

• A)common that people behave in ways to maximize their own long-term interests.
• B)easier to use punishment than reinforcement to control behavior.
• C)difficult to engage in behaviors that have only long-term benefits.
• D)relatively easy for most people to save for retirement.

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Definitions:

Par Value

The face value of a bond or stock, as stated on the certificate, which is the minimum stated value.

Convertible Debentures

Bonds that can be converted into a predetermined amount of the issuing company's equity at certain times during their life, usually at the discretion of the bondholder.

Conversion Price

The predetermined price at which convertible security, such as a bond or preferred stock, can be converted into a specified number of shares of common stock.

Common Stock

A form of corporate equity ownership, a type of security that represents ownership in a corporation and a claim on part of the company’s profits.