n NISM Certifications
X NISM Series X
Medium

Bounded Rationality refers to:

Practice question from NISM Series XB- Investment Adviser (Level 2) Mock Test 6 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. Satisficing decision-making

    Correct answer

  2. B

    Optimal decision-making

  3. C

    Rational decision-making

  4. D

    Risk-seeking decision-making

Why this is the answer

Bounded Rationality describes the limited cognitive capabilities of individuals leading them to settle for satisfactory solutions rather than optimal ones due to constraints like limited information or time.

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