Which of the Following Is Not a Consideration When Deciding

question 57

Multiple Choice

Which of the following is not a consideration when deciding the amount of a loan to apply for?

• A)The amount is based on how much the lender believes you can pay back in the future.
• B)You should borrow slightly more than you need to cover future inflation.
• C)You should borrow only the amount you need.
• D)You will have to pay interest on the entire amount.

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Definitions:

Recency Effect

is the tendency to remember the most recently presented information best.

Personally Relevant

Pertaining directly to or having a direct impact on an individual's personal life, interests, or situations.

Working Memory

A cognitive system responsible for temporarily holding information available for processing.

Chunks

In cognitive psychology, chunks refer to units of information grouped together and stored in the memory for easier recall.