The Federal Reserve System

question 32

Multiple Choice

The Federal Reserve System

• A)was created in 1933.
• B)is run by a congressional committee.
• C)regulates only national banks.
• D)was created specifically to conduct fiscal policy.
• E)None of these answers is correct.

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Definitions:

Actor-Observer Effect

A cognitive bias in which people tend to attribute their own actions to external circumstances but the actions of others to inherent traits.

Fundamental Attribution Error

The tendency to overestimate the effect of personality or disposition and underestimate the influence of situational factors when explaining others' behaviors.

False Consensus Effect

The tendency to overestimate the extent to which others share our beliefs, attitudes, and behaviors.

Younger People

Refers to individuals in the early stages of their life cycle, typically encompassing children, adolescents, and young adults.