You Really Want to Buy a New IPhone

question 131

Multiple Choice

You really want to buy a new iPhone. But you can't seem to save enough money to get it. So you end up buying a cheaper flip phone and decide that the iPhone was not really that great and highly overpriced. According to Freud, this reflects the defence mechanism of

• A)denial
• B)projection
• C)sublimation
• D)reaction formation
• E)rationalization

---

Definitions:

Spot Rates

The current market price at which a particular asset can be bought or sold for immediate delivery and payment.

Fair Value Hedge

A type of hedge that protects against changes in the fair value of an asset, liability, or an unrecognized firm commitment, often due to changes in interest rates or other market variables.

Forward Contract

A financial derivative that represents a customized agreement to buy or sell an asset at a predetermined future date and price.

Spot Rate

The current market price for exchanging one currency for another for immediate delivery.