Examlex
What tool of monetary policy would the Fed most likely use to increase the federal funds rate from 1 percent to 1.25 percent?
Confirmation Bias
The tendency to search for, interpret, favor, and recall information in a way that confirms one's preexisting beliefs or hypotheses.
Representativeness Heuristic
A cognitive bias in which an individual categorizes a situation based on patterns of previous experiences or beliefs about the scenario.
Over-Confidence
A psychological condition where an individual overestimates their knowledge, skill, or importance.
Noise Trader
A trader whose trades are not based on information or meaningful financial analysis.
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