Moishe Can Remember Only the First Two Items and the Last

question 10

Multiple Choice

Moishe can remember only the first two items and the last two items on the grocery list that his wife just read to him over the phone.The other five items in between are gone.His memory of things at the start of the list demonstrates the

• A)encoding specificity effect
• B)primacy effects
• C)recency effect
• D)TOT effect.

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Definitions:

Discount Rate

The interest rate used to discount future cash flows of a financial instrument back to their present value, thus reflecting the cost of capital.

Initial Cost

The upfront expense incurred to purchase an asset or start a project, including all relevant expenses.

Cash Inflows

Money coming into a business, typically from operations, financing, or investing activities; crucial for maintaining liquidity.

Earnings Before Interest And Taxes

An indicator of a company's financial performance calculated as revenue minus expenses, excluding tax and interest.