Cognitive Biases Quiz

What is Cognitive Bias?

• A systematic error in thinking

• A fear of missing out

• A tendency to follow the crowd

• A preference for familiar things

What is an example of the Sunk Cost Fallacy?

• Grace feels the need to finish her meal because she already paid for it.

• Blake is tempted to take out a loan to buy concert tickets.

• Javier wants to invest in trending stocks mentioned in social media posts.

• Riley is overconfident about their investing skills.

What is Confirmation Bias?

• A tendency to search for, interpret, and remember information that confirms one's preconceptions

• A fear of missing out on experiences

• A tendency to follow the crowd

• A preference for familiar things

Which term describes a systematic error in thinking?

• Cognitive Bias

• Loss Aversion

• Endowment Effect

• Herd Mentality

Which term describes the tendency to search for, interpret, and remember information that confirms one's preconceptions?

• Confirmation Bias

• Cognitive Bias

• Endowment Effect

• Herd Mentality

Naresh started a new job and is having some of his paycheck deposited directly into a savings account. Which of the following values BEST explains why Naresh does this on a regular basis?

• Inner

• Social

• Physical

• Financial

Why does Malik keep making small, frequent purchases?

• He needs the items he buys

• He enjoys the feeling of ordering and receiving items

• He wants to save money

• He is influenced by his friends

What does Ginny's budgeting approach emphasize?

• Following social media trends

• Consulting financial advisors

• Understanding personal values

• Tracking bank account balances

What does Malik's behavior of making frequent purchases indicate?

• He is trying to save money

• He is experiencing hedonic adaptation

• He is influenced by his social circle

• He is following a strict budget

Which of the following best describes the concept of hedonic adaptation?

• Adjusting to a new job

• Becoming used to a certain level of happiness

• Saving money for future use

• Seeking financial advice from experts