When People Judge Someone on the Basis of the Perception

question 48

Multiple Choice

When people judge someone on the basis of the perception of a group they are a part of, they are using the shortcut called ________.

• A) stereotyping
• B) self-serving bias
• C) assumed similarity
• D) the halo effect

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Definitions:

Real Return

The rate of return on an investment after adjusting for inflation.

Nominal Rate

Typically refers to the interest rate agreed upon in the financing agreement before any adjustment for inflation.

Inflation Rate

The rate of growth in the broad cost of goods and services, which adversely affects the power of procurement.

Real Rate

The interest rate that has been adjusted for inflation, representing the real cost of funds to the borrower and the real yield to the investor.