Projection Bias

question 20

Multiple Choice

Projection bias

• A) Is the tendency to evaluate future consequences based on tastes and needs at the moment of the decision making
• B) Is the tendency to project current states of mind into the future
• C) Can lead people to underestimate their adaptability
• D) All of these

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Definitions:

Compounded Monthly

Interest on an investment or loan calculated monthly and added to the principal sum for future interest calculations.

Pay Off

To settle a debt or obligation by making a payment, either in partial settlements or in full, to clear the owed amount.

Car Loan

A car loan is a financial agreement where a lender provides funds to a borrower for the purchase of a vehicle, which is paid back with interest over a set period.

Compounded Monthly

A method of calculating interest where the interest earned is added to the principal each month, and the next month's interest is calculated on this new total.