Which of the Following Is Consistent with the Effects of Framing

question 49

Multiple Choice

Which of the following is consistent with the effects of framing on decision making?

• A)People tend to take greater risks when the outcome is described as certain.
• B)When seeking to obtain gains, people are more likely to take risks.
• C)People tend to take greater risks when the outcome is decribed as uncertain.
• D)When seeking to avoid losses, people are more likely to take risks.

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Definitions:

Treasury Department

A government's division responsible for managing its finances, including producing currency, collecting taxes, and managing the national debt.

Controller

The executive in charge of the accounting function in most companies. The controller generally reports to the CFO.

Financial Relationships

The analysis and assessment of the connections between various financial metrics and entities, including investments, expenses, revenues, and profits.

Financial Theory

A branch of economics that aims to understand and explain how financial markets operate, the structure of capital markets, and the pricing of financial instruments.