A Consumer Is Most Likely to Engage in ________ When

question 14

Multiple Choice

A consumer is most likely to engage in ________ when she is in a good mood or when she is uninvolved in other activities.

• A) inertia
• B) cognitive decision-making
• C) variety seeking
• D) mental accounting

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Definitions:

Trading Securities

Financial instruments such as stocks and bonds that are bought and sold for the purpose of generating profits on short-term fluctuations in their prices.

Held-to-Maturity Securities

Held-to-maturity securities are debt securities that an investor intends and is able to hold until their maturity date, recorded at amortized cost.

Unrealized Holding

Gains or losses on investments that have not yet been sold and so are not yet reflected in the income statement.

Debt Securities

Financial instruments representing money borrowed that must be repaid, which include bonds, notes, and bills.