Cognitive dissonance has to do with the beliefs we hold, namely when they come into conflict with one another. For instance, the man has belief number one: Good people do not steal. At the same time, he also believes that he is a good person. When he is confronted with the reality of his actions (that he stole money from his friend), he experiences dissonance since those two beliefs now contradict each other.

Confirmation bias is the tendency to look for evidence that confirms our current beliefs. This can affect many decisions and beliefs we hold in our lives and can impede us from finding out new things about the world and new solutions to problems.  

Although the answer "the tendency to hold on to beliefs despite information that contradicts them" might have been confusing, this is not confirmation bias. This would be an instance of belief perseverance, since we actually find and recognize truthful but contradictory information, yet hold on to our beliefs anyways. Confirmation bias is when we simply seek out confirming evidence without recognizing this information.

IQ/cognitive tests—for example, WISC-V and WJ-IV—do not assess any academic areas, such as reading, writing, or math. Academic areas are tested on achievement tests, like on the WIAT-III.

Cognitive tests focus on processing skills, such as logic, problem solving, and memory.

The amygdala consists of two almond-shaped clusters that regulate much of our emotional experiences. It is located in the limbic system, which is situated between the brainstem (below) and the cerebral cortex (above). 

Amnesia refers to the loss of memory. One may suffer from retrograde (inability to remember past memories) or anterograde (inability to make new memories) amnesia, both of which are severely debilitating. 

Damagia and rexitrification are false terms that hold no significance in psychology. Aphasia refers to the inability to comprehend or create language. Lesions refer to damaged areas of the brain.

Broca's area is heavily involved in the motor movements behind speech production. Damage to this area makes it extremely difficult or impossible to produce speech, but understanding other people's speech is not impacted. This condition is commonly known as Broca's aphasia or expressive aphasia.

The frontal lobe is responsible for many important processes, including problem solving, certain aspects of producing and comprehending language, controlling one's impulses, and consolidating memories. The frontal lobe is not, however, involved in hearing, which mainly takes place in the parietal lobe.

Humans have the greatest number of synapses in infancy, connecting around 86 billion neurons. As we age, synaptic pruning occurs and unused synapses are systematically eliminated.

Functional fixedness is the inability to see the different functions of an object (use as a step stool) other than its conventional use (bucket). 

The three answer choices about risks and losses/gains explain aspects of prospect theory (people take on risks when avoiding potential loss and avoid risks to achieve potential gain), rather than functional fixedness. Functional fixedness is a theory of creativity, whereas prospect theory is a explanation of decision-making.

In multiple-choice exams, all the answers to a given question are provided; however, it is up to the exam-taker to be able to identify, or "recognize," the correct answer. Multiple-choice exams test an exam-taker's recognition of the subject material.