Alex Just Bought a Car Last Month and It Is

question 52

Multiple Choice

Alex just bought a car last month and it is already having major mechanical problems. In which of the following cases is Alex least likely to experience cognitive dissonance?

• A)He bought the car against his friends' advice and spent a lot of money on it.
• B)He bought the car against his friends' advice, but it was cheap.
• C)His friends supported his car purchase even though he spent a lot of money on it.
• D)His friends supported his car purchase, and it was cheap.

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Definitions:

Specialists

Professionals on a stock exchange who are responsible for maintaining a fair and orderly market in their specific assigned securities.

Margin Account

An account offered by brokerages that allows investors to borrow money to buy securities, with the securities themselves serving as collateral for the loan.

Margin Loan

A loan provided by brokers to investors that allows them to buy securities by borrowing funds, using the purchased securities as collateral.

Maintenance Requirements

The minimum equity amount that must be maintained in a margin account.