Answer the Indicated Question on the Basis of the Information

question 111

Multiple Choice

Answer the indicated question on the basis of the information in Table 14.2.Each question is based on the original balance sheet.

-In Table 14.2,the level of total reserves is equal to:

• A) $60 billion.
• B) $260 billion.
• C) $460 billion.
• D) $660 billion.

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Definitions:

Automatic System

Processes in the brain that occur without conscious effort, often quickly and based on learned routines.

Statistical Reasoning

The process of using statistical methods and principles to analyze, interpret, and draw conclusions from data.

Cognitive Bias

A systematic pattern of deviation from norm or rationality in judgment, whereby inferences about other people and situations may be drawn in an illogical fashion.

Anchoring Heuristic

A cognitive bias where an individual relies too heavily on an initial piece of information to make subsequent judgments.