Cognitive Biases

Front

What does FOMO stand for?

Back

Fear of Missing Out

Front

What percentage of people make purchases due to FOMO?

Back

60%

Front

Which of the following best describes a cognitive bias? Options: A logical process used to make financial decisions, A systematic error in thinking that influences decisions and judgments, A method of accurately predicting future market trends, A step-by-step decision-making model for budgeting

Back

A systematic error in thinking that influences decisions and judgments

Front

Which cognitive bias causes someone to stick with a decision because they’ve already invested too much?

Back

Sunk Cost Fallacy

Front

Which cognitive bias might lead you to avoid risks to prevent losing money?

Back

Loss Aversion

Front

What is the first step to overcoming cognitive biases?

Back

Being aware of them

Front

Which cognitive bias is present when someone follows others’ actions without thinking?

Back

Herd Mentality

Front

FOMO can influence people to make purchases they might not otherwise make.

Back

True

Front

Cognitive biases never impact financial decisions.

Back

False

Front

What is Confirmation Bias?

Back

Seeking out only information that confirms your existing beliefs