When people forget about the fungibility of money:

Question

Quizplus · Accepted Answer

When people forget about the fungibility of money, they often create categories to organize their expenditures, even if these categories are meaningless in financial terms. This is known as mental accounting, where individuals treat money differently based on subjective criteria, such as the source of the money or its intended use, rather than recognizing all money as interchangeable. Choices B and C do not accurately describe the consequences of forgetting money's fungibility.

When People Forget About the Fungibility of Money