A Reason for Institutions Becoming More Assertive in Promoting the Interests

question 39

Multiple Choice

A reason for institutions becoming more assertive in promoting the interests of their member investors is:

• A) It is difficult for institutions to sell their holdings.
• B) Their members want them to.
• C) Institutions have greater flexibility in selling stocks.
• D) Institutions have nominated members on the finance committee of the board of directors.

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Definitions:

Framing Effects

The influence on an individual's decision made by the way information is presented, rather than just the information itself.

Wage Increase

An adjustment upward in the wage rate, resulting in employees receiving more compensation for their work.

Status Quo Bias

A cognitive bias that explains individuals' preference for current circumstances to remain unchanged or for decisions to be made that do not alter the current state.

Super-Size

A term often associated with fast food, indicating an option to upgrade a meal to a larger size with more of the product.