Based on the Information in the Table, If the Public

question 13

Multiple Choice

Based on the information in the table, if the public had not decided to hold more currency in 1932, but the actions of the Federal Reserve and the banks remained the same, the money supply at the end of 1932 would have been:

• A)$33.8 billion
• B)$34.2 billion
• C)$35.9 billion
• D)$36.1 billion

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Definitions:

Forecasting Errors

Discrepancies between predicted values and actual values that occur when projecting future data points or trends.

Passive Investments

Investment strategies that involve minimal buying and selling actions, typically focused on long-term appreciation and mimicking market or sector indexes.

Regret Avoidance

Notion from behavioral finance that individuals who make decisions that turn out badly will have more regret when that decision was more unconventional.

Overconfidence

A cognitive bias where an individual overestimates their abilities or the precision of their knowledge, often leading to mistakes in judgment.