Which Term Refers to the Reliance on Stereotypes or Limited

question 44

Multiple Choice

Which term refers to the reliance on stereotypes or limited samples to form opinions about an entire class?

• A) Clustering illusion
• B) Law of small numbers
• C) Representativeness heuristic
• D) False consensus
• E) Recency bias

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Definitions:

Erosion

In finance, erosion refers to the gradual reduction of assets, earnings, or investment value over time.

Future Cash Flows

Predicted income or expenses expected to be generated or incurred in the future.

Present Value

Present value is a financial concept that calculates the current worth of a future sum of money or stream of cash flows given a specified rate of return.

Effective Annual Costs

The true cost of borrowing on an annual basis, including any fees or additional costs associated with the transaction.