Another Name for the Overestimation Bias Based on Snap Judgments

question 7

Multiple Choice

Another name for the overestimation bias based on snap judgments is:

• A) brain ditching option .
• B) anchoring the options.
• C) wishful readiness.
• D) spontaneous trait inference.

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Definitions:

Current Ratio

A financial metric used to evaluate a company's ability to pay short-term obligations with its short-term assets.

Current Assets

Short-term resources expected to be converted into cash within one year, including cash, inventory, and accounts receivable.

Current Liabilities

Obligations or debts that a company is expected to pay off within one year or within its normal operating cycle, whichever is longer.

Creditor's Decision

The process through which a creditor analyzes the financial stability and creditworthiness of potential borrowers before lending money.