An investor needs cash to pay some hospital bills. He is willing to use his dividend income to pay the bills but he will not sell any stock to do so. He is engaging in.
a. overconfidence.
b. representativeness.
c. forecast errors.
d. mental accounting.

d.mental accounting is the correct answer.

Explanation:

An investor is engaging in mental accounting because mental accounting occurs when someone puts their cash into separate sections based on personal criteria.The mental accounting concept was developed by Richard H. Thaler in the year 1999 that concerned with budgeting and categorizing the investments.Mental accounting motivates people to take irrational expenditure determination.

Secured loans are protected by collateral security. examples: title loans where the borrower uses the car title as collateral security interest rates are lower and repayments are longer therefore risk is low as a collateral security is given as guarantee to the bank in case of failure to pay the loanunsecured loans are not protected by collateral security but it is given on the creditworthiness of the borrower, trusting that she/he will pay on time. examples; payday loans is a short term loan where the borrower lends money from the bank and pays is back when the borrower receives his/her wages.interest rates are high and repayments are shorter. but the risk is high as no collateral security is given as a guarantee to the bank for payment of the loan