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

---

Definitions:

Options Contract

A contract giving the buyer the right, but not the obligation, to buy (call option) or sell (put option) an underlying asset at a specified price on or before a certain date.

Forward Contract

A financial derivative that represents a personalized agreement to buy or sell an asset at a specific price on a future date.

Futures

Standardized contracts to buy or sell a specific asset at a predetermined price at a specified future date, used for hedging or speculation.

Forwards

A contract between two parties to buy or sell an asset at a specified price on a future date.