Which of the Following Behaviours Is Consistent with Escalation Bias

question 31

Multiple Choice

Which of the following behaviours is consistent with escalation bias?

• A) Buying more of a stock as it increases in value.
• B) Buying more of a stock as it decreases in value.
• C) Selling a stock as it decreases in value.
• D) Selling a stock as it increases in value.
• E) Buying or selling a stock as it increases in value.

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Definitions:

Fair Credit Reporting Act

A federal law designed to ensure the accuracy, fairness, and privacy of consumer information contained in the files of credit reporting agencies.

Regulation Z

A set of rules issued by the Federal Reserve Board of Governors to implement the provisions of the Truth-in-Lending Act.

Federal Reserve Board Of Governors

The governing body of the Federal Reserve System, overseeing the central banking system of the United States.

Truth-In-Lending Act

A federal law designed to promote the informed use of consumer credit, by requiring disclosures about its terms and cost.