An Exchange Permit Can Stipulate the

question 25

Multiple Choice

An exchange permit can stipulate the

• A) quantity of goods that can be exchanged for a particular sum of foreign currency.
• B) number of parties that can be involved in an exchange transaction.
• C) amount to be exchanged that must be deposited in a local bank for a set period.
• D) quality standards of the goods involved in an exchange.
• E) number of times one party can avail exchange permits.

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Definitions:

Representativeness Heuristic

A mental shortcut that involves judging the likelihood of an event or situation by comparing it to an existing prototype that already exists in our minds.

Confirmation Bias

The tendency to search for, interpret, favor, and recall information in a way that confirms one’s preexisting beliefs or hypotheses.

Mental Sets

A tendency to solve problems using methods that have worked in the past rather than considering new approaches.

Functional Fixedness

A cognitive bias that limits a person to using an object only in the way it is traditionally used, hindering problem-solving.