Asked by Diante Pierce on May 19, 2024
Verified
When a consumer believes that she can pay her credit card much faster than it is realistic, she suffers precisely from:
A) overconfidence.
B) over-optimism.
C) over-precision.
D) overcorrection.
Credit Card
A card issued by a financial institution that allows the cardholder to borrow funds with which to pay for goods and services with the promise to repay these funds, plus any agreed charges.
Over-optimism
The tendency to overestimate the likelihood of positive outcomes in the future.
Consumer
An individual or group that purchases goods or services for personal use.
- Acknowledge how behavioral biases such as overconfidence, over-optimism, and over-precision influence investor decisions and phenomena like market bubbles.
Verified Answer
MV
Maria VillalobosMay 24, 2024
Final Answer :
B
Explanation :
Over-optimism refers to an unrealistic positive view of one's abilities or situation, which can lead to overestimating one's ability to pay off a credit card balance.
Learning Objectives
- Acknowledge how behavioral biases such as overconfidence, over-optimism, and over-precision influence investor decisions and phenomena like market bubbles.