Which of the following is a feature of the 'Availability Heuristic'?
A. People always use base rates correctly
B. Memory has no effect on probability judgments
C. People assess the probability of an event by the ease with which instances come to mind
D. Only statistical frequencies matter
Answer: Option C
Solution (By JKSSB Mock Tests)
The availability heuristic leads people to judge the likelihood of events by how readily examples can be recalled, which can produce systematic biases when memory is distorted by vividness or recency.
Explanation:
The Indian money market comprises various short-term instruments including the call/notice money market, treasury bills, commercial paper, certificates of deposit and collateralised instruments.
No comments yet. Be the first to start the discussion!