When People Are in Financial Difficulty an Advisor Will Usually

question 19

Multiple Choice

When people are in financial difficulty an advisor will usually recommend establishing a budget for spending.One reason is that a budget will act to discipline behavior if people psychologically are subject to

• A)Bounded rationality
• B)Mental accounts
• C)Segregated gains
• D)The halo effect

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Definitions:

Time-Series Graph

A graphical representation showing how a variable changes over time.

Unemployment Rate

The share of the employment-seeking population in the labor force that currently does not have a job.

Increased

A term indicating a rise or growth in a particular variable or quantity.

Pie Chart

A circular statistical graphic divided into slices to illustrate numerical proportion, with the arc length of each slice corresponding to the quantity it represents.