The anchoring and adjustment heuristic comes in to play when consumers base their predictions on the quickness and ease with which a particular example of an outcome comes to mind

Life insurance guaranty funds

A. are sponsored by state insurance regulators. B. involve a permanent reserve fund similar to the FDIC's bank deposit reserve. C. require uniform contributions from each state when there is a failure of an insurance company. D. make policyholder payments immediately in the event of an insurance company failure. E. are regulated by the Federal Reserve Bank.

The Larkin Corporation is contemplating a two-for-one stock split of its common stock. Its $4 par value common stock will be reduced to $2 after the split. It has two million shares issued and outstanding out of a total of three million authorized. The distribution of the additional shares to the shareholders requires

A. Both authorization by the board of directors and approval by the shareholders. B. The recipients to recognize a taxable dividend. C. That surplus equal to the par value of the existing number of shares issued and outstanding be transferred to the stated capital account. D. The trustees of trust recipients of the additional shares to allocate them ratably between income and corpus.