Financial Planning Helps Us

question 34

Multiple Choice

Financial planning helps us:

• A)control inflation.
• B)have flexibility to handle job loss.
• C)control unemployment rates.
• D)obtain a social security number.
• E)decrease national debt.

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Definitions:

Representative Heuristic

A mental shortcut that involves making a probability judgement by comparing an object or event to a prototype of the object or event.

Additive Strategy

An approach where elements are added together to solve problems or make decisions, often seen in mathematics or decision-making processes.

Anchoring

Overestimation of the importance of a factor by focusing on it to the exclusion of other relevant factors.

Framing

The way information is presented so as to emphasize either a potential gain or a potential loss as the outcome.