Psychology and Finacial Wellbeing

People who believe that what happens to them is based on fate or luck might view their financial journey as being uncertain. This is an example of 

• financial risk tolerance. 

• financial literacy. 

• feelings of control. 

• financial ability. 

Which of the following refers to your confidence and peace of mind regarding your financial situation? 

• Financial literacy. 

• Financial well-being. 

• Financial ability. 

Which of the following refers to your willingness to engage in financial endeavors that have uncertain outcomes? 

• Financial literacy. 

   

• Financial knowledge. 

• Financial risk tolerance. 

• Financial ability.

Which of the following is measured by adding up how much a country produces in goods and services in a year? 

• Gross domestic product. 

   

• The cost of goods sold.

• Financial literacy. 

• Financial risk tolerance. 

How does consumer spending affect GDP? 

• If spending decreases, GDP increases. 

• If spending increases, GDP increases. 

• Consumer spending doesn’t affect GDP.

• If spending increases, GDP decreases. 

Human capital includes which of the following?

• Formal education. 

• Skill development. 

• Health. 

• All of these answer choices are correct. 

Social capital includes which of the following? 

• Informal and formal networks. 

• Financial well-being and financial knowledge. 

• Formal networks and financial knowledge. 

• Human capital and informal networks. 

Financial knowledge can lead to increased what? 

• Confidence. 

• Risk. 

• Perception. 

• Social capital. 

What can lead to becoming overconfident in future decisions? 

• Confirmatory bias. 

• Status quo bias. 

• Optimism bias. 

• Procrastination. 

If you dislike losing, especially money, you might be said to be which of the following? 

• Procrastinator. 

• Strategic. 

• Loss-averse. 

• Heuristic.