Behavioural Finance Is Best Defined As

question 29

Multiple Choice

Behavioural finance is best defined as:

• A) The area of finance dealing with the implications of reasoning errors on financial decisions.
• B) The belief that your abilities are better than they really are.
• C) Taking an overly optimistic view of potential outcomes
• D) Searching for (and giving more weight to) information and opinion that confirms what you believe rather than information and opinion to the contrary.
• E) The tendency of individuals to make different (and potentially inconsistent) decisions depending on how a question or problem is framed.

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Definitions:

Withdrawn-rejected

Describes individuals, often in psychological and educational contexts, who are both socially withdrawn and rejected by peers.

Misinterpret

To understand or interpret incorrectly, often leading to confusion or misunderstanding.

Socioeconomic Status

An indicator of a person's or household's socio-economic standing compared to others, determined by factors like income, educational achievements, and job status.

Poverty

A socioeconomic condition characterized by a lack of access to basic resources and services such as food, clean water, education, and healthcare.