Fundamental Attribution Error Refers to the Tendency to Attribute the Behaviour

question 189

True/False

Fundamental attribution error refers to the tendency to attribute the behaviour of other people to internal factors more than external factors.

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Definitions:

Excess Reserves

The amount of reserves that banks hold over the minimum required by the central bank to back deposits.

Money Creation

The process by which the money supply of a country is increased through the activities of its central bank and commercial banking system.

Banking System

The network of banks and financial institutions that provide banking services, including deposits, loans, and currency exchange.

Required Reserve Ratio

The minimum percentage of deposits that a bank must hold in reserve and not lend out.