What does the recency effect indicate?

The recency effect refers to the phenomenon where individuals are more likely to recall the most recently presented information in a sequence. This occurs because the last items presented are still within working memory, having not yet decayed or been displaced by new information. The correct answer emphasizes short-term memory storage, as it is within this memory system that the most recently encountered data remains accessible shortly after presentation.

In contrast, the other options relate to different types of memory or processes. Long-term memory deals with storage of information over extended periods, typically beyond the immediate recall associated with recency. Sensory memory is related to the very first stage of memory processing, where information is retained for only a brief moment, often less than a second. Decayed memory retention pertains to how information diminishes over time if not actively rehearsed, but it does not capture the immediate recall effect demonstrated by recency.