The Recency Effect Is

question 31

Multiple Choice

The recency effect is

• A)the disposition to infer from others what is most recently relevant to the situation.
• B)the tendency to evaluate others in terms of the most recent impression they make on us.
• C)the tendency to evaluate others on the basis of the initial information we receive about them.
• D)all of these

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Definitions:

Callable Bonds

Bonds that are subject to redemption (buy back) at a stated dollar amount prior to maturity at the option of the issuer.

Common Stock

Shares of ownership in a corporation, giving holders voting rights and a portion of the company's profits through dividends.

Convertible Bonds

Bonds that can be converted into a predetermined number of the issuing company's shares at certain times during the bond's life, usually at the discretion of the bondholder.

Interest

The cost of borrowing money, represented as a percentage of the principal, paid by the borrower to the lender for the use of the funds.