Which of the Following Statements Is False

question 108

Multiple Choice

Which of the following statements is false?

• A) People make reasoning errors only when they are in the automatic processing mode.
• B) People tend to switch from automatic to controlled thinking when they are highly motivated.
• C) People tend to switch from controlled to automatic thinking when they are tired or distracted.
• D) Both automatic and controlled processing are adaptive and useful.

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Definitions:

Bonds

A type of fixed-income investment where an investor loans money to an entity (corporate or governmental) which borrows the funds for a defined period at a variable or fixed interest rate.

Asset Allocation

The strategy of distributing investments among various classes of assets to manage risk and enhance returns.

Abnormal Return

Abnormal Return is the difference in the actual return of a security over a set period of time from its expected return based on the market or model prediction.

Bonds

Fixed income investment products that represent a loan made by an investor to a borrower, typically corporate or governmental, which pays periodic interest payments and the return of the principal at maturity.