If the Exchange Rate Is Such That $1 Equals 5

question 154

Multiple Choice

If the exchange rate is such that $1 equals 5 Indian rupees, then the price of a rupee is

• A) $5.
• B) $1.
• C) $0.40.
• D) $0.20.

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Definitions:

Framing

The way a decision is phrased or the way options are described. Seemingly peripheral aspects of the framing can influence decisions by changing the point of reference.

Double-Or-Nothing

A gamble or bet in which the stakes are either doubled or lost entirely.

Coin Flip

A basic probability event with two possible outcomes, heads or tails, often used to illustrate randomness or make simple decisions.

System I "Shortcuts"

System I "Shortcuts" refer to the fast, automatic, intuitive responses and decisions our brain makes without the need for conscious analytical thought.