You Are Given a List of Grocery Items to Remember

question 68

Multiple Choice

You are given a list of grocery items to remember to purchase on your trip to the store. These items are; apples, bread, celery, lettuce, grapes, and onions. According to the recency effect, what item are you most likely to remember?

• A) apples
• B) lettuce
• C) onions
• D) none, the recency effect states that you have to learn the items while in the store to be able to retrieve them.

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Definitions:

U.S. Dollar Equivalent

The value of a foreign currency transaction converted into U.S. dollars at the current exchange rate.

Forward Contract

A financial agreement to buy or sell a specific asset at a predetermined price at a set time in the future.

Fair Value Hedge

A financial strategy used to offset the risk of changes in the fair value of a recognized asset or liability or an unrecognized firm commitment.

Rupee

The official currency of India, also used in other South Asian countries but may differ in value.