Concept:The idiom "Penny-wise and pound-foolish" describes a person who is careful about small expenditures but wasteful or careless with large sums of money.
Explanation:The phrase originates from British currency, where a pound was once worth 240 pennies (pence).
It highlights the irony of being extremely cautious about minor amounts while ignoring the impact of larger, more significant expenses.
For example, a company might save a few rupees on office supplies but lose far more by making a poor investment decision — that is penny-wise and pound-foolish.
Among the given options:
• Option A ("Wise to spend each penny carefully") is too narrow and misses the contrast with large amounts.
• Option B ("Careful about small amounts but careless about large amounts") captures the exact meaning.
• Option C ("People who don't understand the importance of each penny") reverses the meaning.
• Option D ("Careful about large amounts but careless about small amounts") is the opposite of the idiom.
Thus, only option B correctly describes the idiom's sense of misplaced thrift.
Answer:Option B: Careful about small amounts but careless about large amounts.