Precautionary Saving Is Saving For

question 82

Multiple Choice

Precautionary saving is saving for:

• A) retirement, when income falls.
• B) unpredictable expenses.
• C) bequests to benefit children.
• D) repayment of debt previously incurred.

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Definitions:

Diathesis-Stress Model

A psychological theory that explains behavior as a predispositional vulnerability together with stress from life experiences.

Operant Conditioning

A training approach in which behavior intensity is changed through rewards or discouragements.

Aversive Conditioning

A method of behavior modification that involves using unpleasant stimuli to discourage undesirable behaviors.

Classical Conditioning

A method of conditioning in which the pairing of two stimuli results in a response initially elicited by the second stimulus being evoked by the first stimulus after repeated associations.