Authority Bias and Financial Decisions Quiz

What is authority bias?

• Trusting experts too much, even against common sense

• Ignoring expert advice completely

• Trusting only family and friends

• Believing in conspiracy theories

What percentage of people in the experiment followed orders to shock others?

• 65%

• 50%

• 75%

• 80%

What is a potential danger of authority bias in investing?

• Losing money by trusting experts blindly

• Making money quickly

• Gaining more knowledge

• Building a strong network

What should you consider when making financial decisions?

• Whether you are holding onto a bad investment due to commitment

• How much money you can borrow

• The color of the investment brochure

• The popularity of the investment

What is social proof in advertising?

• Following trends because others are doing it

• Ignoring trends completely

• Creating unique products

• Selling products at a loss

What is a risk of following the crowd in investments?

• Panic selling when the market crashes

• Guaranteed profits

• Increased savings

• Better investment choices

What is the effect of commitment bias on selling investments?

• Selling good investments and holding onto bad ones

• Selling only bad investments

• Holding onto only good investments

• Selling investments at the right time

What is a common tactic used to get people on the 'Yes' train?

• Asking if they want to hear more about a perfect financial product

• Offering free samples

• Providing discounts

• Giving away gifts

What is a consequence of commitment and consistency bias in financial decisions?

• Holding onto bad investments

• Making quick profits

• Avoiding all risks

• Diversifying investments

What should you ask yourself before making a purchase influenced by reciprocity?

• Is this the best choice for me?

• Is this product popular?

• Is this the cheapest option?

• Is this a limited-time offer?