When Howie's Previous Girlfriend Used to Get Upset with Him

question 153

Multiple Choice

When Howie's previous girlfriend used to get upset with him, he could smooth things over by buying flowers or chocolates for her. He keeps trying this strategy with his current girlfriend, but she gets angry with him each time. It appears that Howie has developed a _______________, which is interfering with the development of a new relationship strategy.

• A) mental set
• B) fairness bias
• C) hindsight bias
• D) confirmation bias

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Definitions:

Carrying Amount

The value at which an asset is recognized on the balance sheet after deducting accumulated depreciation and impairment losses.

Market Rate of Interest

The prevailing rate of interest for securities or loans in the market, determined by supply and demand and influenced by the general economic conditions.

Straight-Line Method

A depreciation technique where the value of an asset is evenly reduced over its operational life, ensuring a consistent depreciation charge each year.

Bond Premium

The additional value that an investor pays above a bond's face value; occurs when the bond's interest rate is higher than the market rate.