The Tendency to Use One Stimulus as a Reference Point

question 65

Multiple Choice

The tendency to use one stimulus as a reference point in judging a second stimulus is called the______________effect.

• A)anchoring
• B)halo
• C)lock
• D)disparity

Understand the process and implications of covered interest arbitrage.

Realize the role of international corporations like Export Development Canada in facilitating international trade.

Explain the concept of exchange rate risk and its types such as transaction, translation, and economic exposure.

Describe the operation of the foreign exchange market and its significance to global trade.

---

Definitions:

Random Process

A procedure or phenomenon in which the outcome is unpredictable, and under identical conditions can lead to different results.

Described

Characterized or detailed in terms of appearance, function, or attributes, often used in the context of formal identification and naming in scientific classification.

Carbon Isotopes

Variants of the carbon atom with different numbers of neutrons, useful in studying environmental changes and understanding past climate conditions.

Extinct Whales

Whales that have no living descendants, often studied through fossils to understand the evolution and biodiversity of cetaceans.