An Arrangement That Consolidates Small Amounts of Funds to Satisfy

question 41

Multiple Choice

An arrangement that consolidates small amounts of funds to satisfy the demand for large amounts is known as:

• A)financial innovation
• B)leverage
• C)retail banking
• D)coincidence of wants
• E)pooling of funds.

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Definitions:

Base-Rate Effect

A cognitive error whereby people judge the likelihood of an event by intuitive examples rather than by statistical evidence.

Availability Heuristic

A cognitive shortcut based on the first examples that appear in someone's thoughts when assessing a certain topic, idea, strategy, or choice.

Related Concepts

Ideas, terms, or phenomena that share common features or are associated with each other within a specific context or field of study.

High Level Concepts

Abstract ideas or notions that are complex and encompass broad categories or ideas, which oftentimes require significant understanding and knowledge to grasp.