Sometimes ignoring that money is fungible can:
I. be useful and help someone stay on budget.
II. lead to riskier decisions than individuals would otherwise make.
III. be irrational and cause costly mistakes.

Question

Quizplus · Accepted Answer

Ignoring the fungibility of money can indeed be useful for budgeting by mentally categorizing funds for specific purposes, but it can also lead to riskier decisions and irrational behaviors that result in costly mistakes. This is because treating money as non-fungible (when it actually is) can distort decision-making processes.

Sometimes Ignoring That Money Is Fungible Can