Avoiding Extreme Judgments and Rating People and Objects as Average

question 60

Multiple Choice

Avoiding extreme judgments and rating people and objects as average or neutral is known as the _______ perceptual error.

• A) Halo
• B) Leniency
• C) Central tendency
• D) Recency
• E) Contrast effects

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Definitions:

Coupon Rate

The percentage annually paid as interest on a bond, relative to its face value.

Market Interest Rate

The prevailing rate of interest determined by supply and demand in the money market.

Par

Typically refers to a face value of a bond or stock that is set at issuance, or the stated value of a currency.

Principal Amount

The original sum of money borrowed in a loan, or invested, on which interest is calculated.