Which One of the Following Is an Example of Mental

question 27

Multiple Choice

Which one of the following is an example of mental accounting?

• A)associating a security's gains or losses based on its purchase price
• B)calculating the gain or loss on a security on a daily basis
• C)computing the amount of tax due on the gain from a stock sale
• D)considering the gain realized when a stock pays a dividend
• E)comparing the gains and losses on a portfolio to those of the overall market

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Definitions:

Original Election

The first occurrence of an electoral process to fill a public office or adopt a proposal.

Electoral College

A body of electors established by the United States Constitution, charged with the responsibility of electing the president and vice president based on the popular vote in each state.

Constitution

The fundamental principles or established precedents according to which a state or other organization is governed.

Electoral College Votes

The process in the United States by which electors from each state cast votes to determine the President and Vice-President.