Mental Accounting Quiz

4 Questions | Total Attempts: 40

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Accounting Quizzes & Trivia

Mental accounting quiz.


Questions and Answers
  • 1. 
    Mental accounting refers to the tendency of individuals to
    • A. 

      Believe the onset of a certain random event is less likely to happen following an event or series of events.

    • B. 

      Anchor thoughts to a reference point even though it may have no logical relevance to the decision at hand.

    • C. 

      Separate money into different accounts based on subjective criteria.

    • D. 

      Value gains and losses differently.

  • 2. 
    Behavioral finance suggests that a key point of mental accounting is for individuals to remember that
    • A. 

      Investments should be categorized as risky and safe.

    • B. 

      Money is fungible.

    • C. 

      Saving is always the best use of funds.

    • D. 

      "found" money should never be saved.

  • 3. 
    Studies have shown that employees given rewards of gifts instead of cash are
    • A. 

      Annoyed.

    • B. 

      More happy.

    • C. 

      Indifferent.

    • D. 

      Less happy.

  • 4. 
    In the Shafir/Thaler paper, individuals making purchases for future consumption tend to categorize the expenditure as
    • A. 

      Cost.

    • B. 

      Investment.

    • C. 

      Sunk-cost.

    • D. 

      Savings.