n NISM Certifications
X NISM Series X
Medium

The concept where the treatment of money depends on its origin and use is known as non-fungible mental accounts, which results from mental accounting bias, leading individuals to treat money differently based on categorization.

Practice question from NISM Series XB- Investment Adviser (Level 2) Mock Test 4 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Budgetary Allocation

  2. B

    Source of origin bias

  3. C

    Goal Orientation

  4. Non-fungible mental accounts

    Correct answer

Why this is the answer

Mental accounting causes individuals to categorize and treat money differently based on mental accounts, affecting financial decisions.

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