Players will immediately realise that a Psychology test is taken in a similar way as a Break test in close combat and uses the same characteristic, namely the Leadership value. However, a Break test is not a Psychology test. The two are quite separate. This is an important point to remember because some bonuses and special rules apply specifically to Break tests and others apply specifically to Psychology tests.
The most important rule to distinguish them is that units engaged in close combat and fleeing units never take Psychology tests (Panic, Fear, Terror and Stupidity). The reason for this is that troops that are busy fighting for their lives or already running madly for cover are less receptive and less prone to look around and be influenced by potentially upsetting events that happen around them, and their psychology is covered by the Break tests themselves.