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lana [24]
3 years ago
8

An investor has her money segregated into checking, savings, and investments. The allocation among the categories is subjective,

yet the investor spends freely from the checking account and not the others. This behavior can be explained as _______________.
Business
1 answer:
77julia77 [94]3 years ago
5 0

Answer:

An investor has her money segregated into checking, savings, and investments. The allocation among the categories is subjective, yet the investor spends freely from the checking account and not the others. This behavior can be explained as _______________.

Mental accounting

Explanation:

Mental accounting is the concept with which the management sciences explain the mental processes in which people perform categorization, evaluation, and coding of economics. It was proposed by Richard Thaler and suggests that people can perform it with easiness when they manage the accounting of their finance in their minds.

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