Personal Finance Semester Exam Review

Harper is planning to apply for college and wants to qualify for federal financial aid. What document must she file?

• ASVAB

• SAT

• Form 1040EZ

• FAFSA

Who receives and uses the information submitted in your FAFSA?

• Your employer to see if you'll still be able to work while attending college

• Your parents to keep track of your progress at college

• The federal government for tax purposes

• The schools you’ve applied to and the government to determine your eligibility for financial aid

Which of the following sources does not typically provide scholarships to college students?

• private foundations

• state governments

• local businesses

• credit card companies

Which of the following is NOT typically considered a component of personal finance?

• Budgeting your expenses

• Saving for retirement

• Understanding tax laws

• Memorizing currency exchange rates

When deciding on a career path after high school, what should Ethan do?

• Flip a coin and hope for the best!

• Collect data and use a rational decision-making model to weigh the alternatives.

• Make a list, ask the advice of his best friends and parents, go with whatever the vibe is that week.

• Refuse to make a decision until the last minute, and then do whatever he has to do

Which of the following is a key advantage of using a rational decision-making process?

• It ensures decisions are made quickly without much thought.

• It allows for decisions to be made based on gut feelings.

• It provides a structured approach to evaluate all possible options.

• It relies solely on past experiences to make decisions.

After graduating high school, Jackson decided to enter the workforce immediately. What is a benefit of his decision?

• Gain valuable work experience

• Cannot become financially independent

• There are no benefits to working right after high school.

• No access to employer-sponsored healthcare benefits

What are the benefits of pursuing a two-year degree or certificate program at a community college?

• Shorter degree completion timeline

• More affordable tuition and fees

• Career fields that are in demand

• All of the above

Whenever Alex scrolls through his social media feed, he often feels uneasy and dissatisfied with his own life after seeing his peers enjoying exciting experiences. What cognitive bias is Alex experiencing?

• Confirmation Bias

• Overconfidence Effect

• Fear of Missing Out (FOMO)

• Bandwagon Effect

During a holiday sale, Emma noticed a handbag originally priced at $500 was now marked down to $200. She felt compelled to buy it because it seemed like a significant discount. Emma is influenced by (a)   .

• Anchor Bias

• Sunk Cost Fallacy

• Fear of Missing Out (FOMO)