Financial Literacy Final Exam

Front

What does this situation describe? Megan and her friends have had a long week and decided to treat themselves to an expensive meal. Unfortunately, the food isn’t very good, but Jada feels like she needs to finish it because she already paid for it.

Back

Sunk Cost Fallacy

Front

What does this situation describe? Jamal finds himself scrolling on TikTok and making small, frequent purchases for things he doesn’t really need. He likes the feeling of ordering something and getting it delivered within a few days, but then finds that he keeps coming back for more.

Back

Hedonic Adaptation

Front

What does this situation describe? Ryan is learning about investing in their economics class. After learning the basics of stocks and bonds, they feel confident they can pick winning stocks and want to invest half of their savings in stocks they select.

Back

Overconfidence

Front

What does this situation describe? Victoria is considering taking a gap year after graduating high school to travel and do a cheerleading bootcamp. However, she’s doubting her decision because most people from her high school plan to go to a 4-year university after graduating.

Back

Herd Mentality

Front

What does this situation describe? Crystal’s friends are all going to the Beyoncé concert. Crystal hasn’t saved up enough money to buy the expensive tickets, but they are afraid they’ll miss out on the experience if they don’t go. They’re tempted to take out a personal loan to buy the tickets.

Back

FOMO

Front

A checking account is described as

Back

An account that allows you to deposit money and withdraw it easily using checks or a debit card.

Front

What is a savings account?

Back

An account where you store money and earn interest, but can easily access it.

Front

What is one step you can take to protect yourself from identity theft?

Back

Check your bank statements each month to verify that all transactions are accurate.

Front

Michele asks her friends for advice: "Should I start doing mobile banking now that I've got my new smart phone?" Which friend is correct in their statement on the benefits of mobile banking?

Back

It's so convenient, because you can deposit your check using your phone's camera and the bank's app.

Front

All of the following are characteristics of a secured credit card EXCEPT…

Back

They don’t have a spending limit, so you have to be very mindful of how much you buy with them