When People Are in Financial Difficulty an Advisor Will Usually

question 13

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:

Abnormal Functioning

Patterns of behaviors, thoughts, or emotions considered to deviate significantly from societal norms or expectations, often causing distress or disability.

Eccentric

Describing behavior or a person that deviates from the norm in a peculiar or whimsical way.

Experiments

Structured investigations designed to test hypotheses and observe the effects of manipulating one or more variables in a controlled setting.

Recording Observations

The systematic documentation of events, behaviors, or conditions as they are perceived, without adding interpretation or inference.