Module 1 - Money Mindsets - Chapter 4 Quiz

Which situation best reflects loss aversion, even if the choice isn’t the smartest financially?

• Selling an old game to get cash for something better

• Not buying new headphones because you’re saving

• Holding onto a product you don’t use just because you paid for it

• Buying a discounted item before it goes back to full price

A student spends all their birthday money on snacks instead of saving for a new tablet. Which bias most likely influenced their decision?

• Status quo bias

• Confirmation bias

• Present bias

• Anchoring

A jacket is marked down from $120 to $75. You feel like you’re getting a great deal—even though $75 is over your budget. What bias are you experiencing?

• Present bias

• Anchoring

• Loss aversion

• Status quo bias

You believe Brand X shoes are the best, so you ignore any reviews that say otherwise—even if they’re honest and helpful. Which bias is at play?

• Anchoring

• Loss aversion

• Confirmation bias

• Present bias

You’ve always stored money in your piggy bank, and even though a savings account would help you earn interest, you don’t switch. What is the most likely reason for this behavior?

• Anchoring

• Status quo bias

• Loss aversion

• Confirmation bias