Which of the Following Statements Is True

question 50

Multiple Choice

Which of the following statements is true?

• A)FI's should invest in as much technology as possible as it will provide the FI with a competitive advantage.
• B)FI's need to strike a balance as both, too much and too little investment in technology can be bad for the FI.
• C)FI's should invest in as little technology as possible as these investments are too risky.
• D)Technology investments do not have an impact on the survival and profitability of the FI.

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Definitions:

Framing

The way information is presented so as to emphasize either a potential gain or a potential loss as the outcome.

Representativeness Heuristic

is a cognitive shortcut where the likelihood of an object belonging to a category is assessed based on its similarity to a typical case from that category.

Heuristics

Mental shortcuts or rules of thumb that ease the cognitive load of making a decision, often leading to approximation or educated guesses.

Algorithms

Step-by-step procedures or formulas for solving problems or completing tasks.