Unit 1 Test

Inner values are best described as:

• Beliefs about how money should be used

• Personal morals and beliefs that guide decisions

• The desire to fit in with others

• The physical items you want to own

Buying the newest iPhone because your friends all have one is an example of:

• Inner values

• Physical values

• Social values

• Financial values

Financial values are important because they:

• Decide what career you will have

• Shape long-term money habits like saving or investing

• Help you make friends

• Tell you how much something is worth in dollars

True or False: Family, peers, culture, and media are all areas of influence on financial decisions.

• True

• False

Loss aversion means:

• People love taking risks with money

• People fear losing money more than they value gaining it

• People ignore the risks when investing

• People always make logical financial choices

Hedonic adaptation means:

• People always value new things more than old ones

• People stop appreciating something once they get used to it

• People avoid losses at all costs

• People believe happiness from money lasts forever

What do we assess to make choices based on what we value as important?

• Our time, energy, and money

• Our hobbies and interests

• Our friends and family

• Our future goals

Which of the following is an example of physical values?

• Following your friends' spending habits

• Saving money for the future

• Believing in honesty and kindness

• Wanting to own the latest laptop

True or False: Overconfidence bias can cause people to underestimate financial risks.

• False

• True

How many types of "life values" can impact your habits around money?

• Two

• Four

• Five

• Seven