Sasha keeps her money in specific accounts for specific purposes. For example, when she saves for a car, she has a car savings account. Sasha is exhibiting _____.
A) the sunk cost fallacy
B) time inconsistency
C) the framing effect, specifically mental accounting
D) the endowment effect

Question

Quizplus · Accepted Answer

Sasha is demonstrating the framing effect, specifically mental accounting, by categorizing her savings into different accounts for different purposes, which influences how she perceives and spends her money.

Sasha Keeps Her Money in Specific Accounts for Specific Purposes