What Is Retrospective Bias

question 38

Multiple Choice

What is retrospective bias?

• A) when participants interpret past events in overly optimistic ways
• B) when participants interpret past events in inaccurate ways
• C) when participants interpret past events in overly negative ways
• D) when participants interpret past events in highly accurate ways

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Definitions:

Fed

Short for the Federal Reserve, the central banking system of the United States, which regulates the U.S. monetary and financial system.

Open Market

An economic system with no barriers to free market activities, where securities, goods, and services can be traded openly.

Excess Reserves

The amount of reserves that a bank holds beyond the minimum required by regulation or central bank policy, which can be loaned out to generate profit.

Federal Reserve

The Federal Reserve, often referred to as the Fed, is the central banking system of the United States, responsible for setting monetary policy, regulating banks, maintaining financial stability, and providing banking services to government institutions.