A reluctance to take a risk that might lead to a loss of money is an example of
A) the anchoring effect.
B) loss aversion.
C) the gambler's fallacy.
D) algorithmic thought.

Question

Quizplus · Accepted Answer

Loss aversion is a common behavior in which people would rather avoid losing money or assets rather than trying to gain it. This tendency to avoid losses is often stronger than the desire to make gains or take risks.

A Reluctance to Take a Risk That Might Lead to a Loss