Loans Restrict Your Spending or Saving in Future Months And

question 6

True/False

Loans restrict your spending or saving in future months and, therefore, can prevent you from achieving financial goals.

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Definitions:

Sunk Cost Bias

The decision to continue an investment based on past investments of time, effort, and/or money.

Projection Bias

The tendency to mistakenly assume that others share one's current thoughts, feelings, or attitudes.

Randomness Error

An error that occurs when there is no discernible pattern or cause in the mistake or variability.

Intuition

An unconscious process of making decisions based on imagination and possibilities.