Understanding Personal Finance Concepts

Which of the following best describes a cognitive bias?

• A logical method for solving math problems

• A systematic error in thinking that affects decisions and judgments

• A type of bank account

• A government regulation

Tags

CCSS.RL.5.6

What is the primary purpose of a checking account?

• To earn high interest on savings

• To facilitate everyday transactions like deposits and withdrawals

• To invest in the stock market

• To store physical cash

Living paycheck to paycheck means:

• Saving a portion of every paycheck

• Spending all or most of your income before the next paycheck arrives

• Investing in retirement accounts

• Having multiple sources of income

Tags

CCSS.RI.11-12.5

CCSS.RI.6.5

CCSS.RI.7.5

CCSS.RI.8.5

CCSS.RI.9-10.5

Which of the following is an example of a personal financial value?

• The interest rate on a loan

• Believing in saving for emergencies

• The balance in your checking account

• The number of checks you write

• $650

• $550

• $700

• $450

Tags

CCSS.7.NS.A.3

Which cognitive bias might cause someone to keep spending money on a failing investment because they’ve already spent so much?

• Anchoring bias

• Sunk cost fallacy

• Confirmation bias

• Hindsight bias

A checking account typically allows you to:

• Write checks and use a debit card

• Earn high interest rates

• Avoid all banking fees

• Invest in stocks directly

Which of the following is a risk of living paycheck to paycheck?

• Building a large emergency fund

• Being unable to cover unexpected expenses

• Earning more interest on savings

• Having extra money for investments

Personal financial values can influence:

• Only your bank’s policies

• Your spending and saving decisions

• The national interest rate

• The stock market

• $1,325

• $1,275

• $1,000

• $1,225

Tags

CCSS.7.NS.A.3