Financial Literacy and Cognitive Bias Quiz

What is the best way to look at your spending habits?

• Only track your expenses

• Analyze your spending patterns

• Set a budget based on your financial goals

• Combine tracking expenses, analyzing patterns, and setting a budget

How much should be in an emergency fund?

• 1-2 months of expenses

• 3-6 months of expenses

• At least $500

• At least $2,000

What is a cognitive bias?

• A conscious decision-making process

• A subconscious error in thinking

• A logical reasoning skill

• A financial planning strategy

What is the sunk cost fallacy?

• The tendency to search for confirming information

• The tendency to make decisions based on past investments

• The tendency to fear missing out

• The tendency to value owned items more

Which bias involves the tendency to feel anxiety about missing out on events?

• Overconfidence bias

• Herd mentality

• FOMO

• Endowment effect

When budgeting, should you use gross pay or net pay?

• Gross pay for more savings

• Net pay for a more accurate financial plan

• Gross pay for better investment

• Net pay for higher expenses

Which of the following is a way to access money in your checking account?

• Credit card payments

• Direct deposit

• Stock investments

• Real estate transactions

Why might your paycheck be less than the amount you actually earned?

• Due to receiving bonuses

• Due to deductions like taxes and benefits

• Due to working overtime

• Due to receiving a promotion

What is the primary purpose of a debit card?

• To earn interest on savings

• To access funds directly from your bank account

• To apply for loans

• To invest in stocks

How much money does the FDIC insure for account holders per depositor, per insured bank?

• $100,000

• $250,000

• $500,000

• $1,000,000