Credit card companies put a low "minimum required payment" on people's bills in the hope that people will send in low payments, thereby allowing the card companies to earn more interest. The companies are trying to exploit the

Question

Quizplus · Accepted Answer

The anchoring effect is when an individual relies too heavily on an initial piece of information (in this case, the "minimum required payment") to make subsequent decisions. Credit card companies set a low minimum payment as an anchor to encourage consumers to pay just that amount, which in turn allows the companies to earn more interest as the remaining balance accrues interest over time.

Credit Card Companies Put a Low "Minimum Required Payment" on People's