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

---

Definitions:

Major Organic Product

The primary substance produced in the highest yield during an organic chemical reaction.

Major Product

The primary product formed in the greatest amount during a chemical reaction.

Saponification

A chemical reaction involving the hydrolysis of fats or oils by an alkali to produce glycerol and soap.

Ester Hydrolysis

A chemical reaction in which an ester is converted into its constituent alcohol and acid by the action of water or a hydroxide ion.