The Recency Effect Is

question 75

Multiple Choice

The recency effect is:

• A) a basic human tendency to overvalue recent experience when trying to predict the future.
• B) a hotly debated concept among psychologists and economists.
• C) earning a profit by betting against what everyone else is doing.
• D) accounting for most recent profits or losses first on financial statements.

---

Definitions:

Merger Clause

A provision in a contract stating that the written document contains the entire agreement between the parties, excluding prior verbal agreements.

Integrated Contracts

Legal agreements that combine all terms and conditions outlined in several related documents into a single, comprehensive document.

First-Assignment-in-Time Rule

A legal principle that gives priority to the first assignee in time when multiple assignments have been made for the same rights or property.

Intended Beneficiaries

Persons or entities for whom a contract creates a benefit, even though they are not a direct party to the contract.