In Making Decisions, People Tend to Focus on Examples That

question 105

Multiple Choice

In making decisions, people tend to focus on examples that confirm their judgments and ignore instances that do not. This process often leads to

• A)overconfidence.
• B)overbearing behavior.
• C)divergent thinking.
• D)availability heuristic.

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Definitions:

Money-Market Securities

Short-term financial instruments, typically with high liquidity and low risk, used for borrowing and lending in the money market.

Current Assets

Assets likely to be converted into cash, sold, or consumed within one year or the business cycle, whichever is longer.

Statement Of Financial Position

A financial document that shows the assets, liabilities, and equity of a company at a particular point in time, also known as a balance sheet.

Fair Value

The price that would be received for selling an asset or paid to transfer a liability in an orderly transaction between market participants.