What Criteria Influence Who Gets Appointed to a Position Within

question 39

Multiple Choice

What criteria influence who gets appointed to a position within the Executive Office of the President?

• A) policy expertise or connections to the president's party
• B) a graduate degree and previous work experience within the federal government
• C) connections to either of the major political parties and experience working on a presidential campaign
• D) familiarity with testifying before Congress and previous experience on Capitol Hill
• E) an Ivy League degree and personal wealth (to help reward the president and the president's party later)

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Definitions:

Actively Managing

The process of oversight and decision-making in investment strategies that involve frequent trading and allocation adjustments to achieve specific investment objectives.

Limits To Arbitrage

The constraints that prevent traders from executing trades that would bring prices into equilibrium, including transaction costs, funding costs, and risk considerations.

Availability Bias

A cognitive bias that causes people to overestimate the probability of events associated with memorable or vivid occurrences.

Clustering Illusion

The cognitive bias of seeing a pattern in random events where none actually exists.