The Tendency of Bankers to Take Unwarranted Risks in Making

question 105

Multiple Choice

The tendency of bankers to take unwarranted risks in making loans because deposits were insured is an example of _____.

• A)anchoring bias
• B)self-serving bias
• C)moral hazard
• D)hazard pay
• E)banker's lobbying

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Definitions:

Classical Conditioning

A learning process that involves creating associations between a naturally occurring stimulus and a previously neutral stimulus.

Conditioned Feeding Responses

Learned responses to food-related stimuli, such as salivation or changes in metabolism, that occur due to classical conditioning.

Unconditional Stimulus

A stimulus that elicits a natural, reflexive response without prior learning or conditioning.

Differentiation

The process of distinguishing or creating differences between objects, ideas, or aspects of experience, often to understand or categorize them more effectively.