Excuse my Behavior
When individuals focus on recent events or information rather than taking a long term view
What is Recency Bias?
Buying and selling government securities to influence interest rates
What are open market operations?
Government-imposed fee levied on the carbon content of fossil fuels
What is a carbon tax?
This act, signed into law by President Obama, has led to 40 million Americans gaining health coverage
What is the Affordable Care Act?
This financial instrument allows you to buy, but you don't have to
What is an option?
The human tendency to dislike losses more than we like to experience a gain
What is loss aversion?
This model describes the relationship between expected return and the risk relative to the market
What is the CAPM?
Originally developed in the 1980s, this metric quantifies the economic harm from CO₂ emissions in dollar terms, influencing policy decisions by assigning a monetary value to each ton of carbon released into the atmosphere.
What is Social Cost of Carbon?
This program provides health coverage to the eldery
What is Medicare?
An investment theory that allows investors to assemble an asset portfolio that maximizes expected return for a given level of risk
What is Modern Portfolio Theory?
The tendency to seek information or interpret information in a manner that supports pre-established views on a decision or topic
What is confirmation bias?
The market where short-term borrowing and lending takes place among financial institutions
What is the money market?
This provides a $7500 discount for purchasing electric vehicles that meet government requirements
What is a subsidy?
What is the FDA?
Converting an asset into a form that is easily traded or sold, often used with mortgages
What is securitization?
The tendency people have to use their own experiences to shape future judgment
What is anchoring?
What is Quantitative Easing?
Where the market price does not account for the cost of some externality that damages the environment
What is a market failure?
The idea that sicker people are more likely to want health coverage
What is adverse selection?
The A in EBITDA
What is Amortization?
When a person’s lack of knowledge and skill in a certain area causes them to overestimate their own competence
What is the Dunning-Krueger effect?
To promote maximum employment and stable prices in the United States
What is the dual mandate?
The visualization of the idea that economic development causes but then resolves environmental damage
What is the Kuznets Curve?
The idea that government provided health coverage can reduce the number of people on private health plans
What is crowding out?
The Q in NASDAQ
What is Quotations? (National Association of Securities Dealers Automated Quotations)