When Traders Move as a Herd in the Same Direction

question 21

Multiple Choice

When traders move as a herd in the same direction at the same time such as what occurred when George Soros betted against the British pound in 1992,a(n) _____ occurs.

• A)efficient market
• B)inefficient market
• C)bandwagon effect
• D)Fisher Effect

---

Definitions:

Feeling Rules

Social norms that dictate the appropriate and expected emotional responses in a given situation or social context.

Grief, Anger, Disgust

Emotional responses to various forms of loss, injustice, or violations of moral and ethical standards, each with distinct triggers and expressions.

Ethnomethodologists

Sociologists who study how people use everyday interactions to construct a shared social reality.

Emotion Management

The process of regulating and controlling one's emotions in personal and professional contexts to meet the demands of social interactions.