The Desire for Floating-Rate Bonds, and Consequently Their Increased Usage

question 85

True/False

The desire for floating-rate bonds, and consequently their increased usage, arose out of the experience of the early 1980s, when inflation pushed interest rates up to very high levels and thus caused sharp declines in the prices of outstanding bonds.

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Definitions:

Individualism

A societal theory that champions the cause of individual liberties against the imposition of collective or state authority.

Foot-In-The-Door Effect

A psychological phenomenon where agreeing to a small initial request increases the likelihood of agreeing to a larger request later.

Milgram Experiments

A series of psychological experiments conducted by Stanley Milgram, which tested individuals' willingness to obey authority figures, even when it meant harming others.

Terrorist Mentality

The psychological framework or set of beliefs that motivates individuals to commit acts of terrorism.