Wilma Has a $25,000 Certificate of Deposit (CD) at the Local

question 26

Multiple Choice

Wilma has a $25,000 certificate of deposit (CD) at the local bank. The interest on this certificate, $1,000, was credited to her account this year but she must pay an early withdrawal penalty if she cashes in the CD before next year. Which of the following is a true statement?

• A) Wilma must include the $1,000 of interest in her income this year.
• B) Wilma must include the $1,000 of interest in her income when she cashes the CD.
• C) Wilma must include the $1,000 of interest in her income this year only if the bank waives the early withdrawal penalty.
• D) Wilma must include the $1,000 of interest in her income next year if she does not pay the early withdrawal penalty.
• E) All of the above

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Definitions:

Human Behavior

Human behavior encompasses the range of actions and mannerisms exhibited by humans in conjunction with their environment, life experiences, and culture, influenced by emotions, attitudes, ethics, and genetics.

Classical Conditioning

An educational process that happens by linking a naturally occurring stimulus with one that occurs in the environment.

Little Albert

An early 20th-century experiment in classical conditioning by John Watson and Rosalie Rayner, demonstrating how emotional responses can be conditioned in humans.

John B. Watson

An American psychologist who founded behaviorism, emphasizing the study of observable behavior and rejecting introspection.