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PF Final Review 1

Total questions: 12

Worksheet time: 12mins

Name
Class
Date
1.

You see an advertisement promoting a sale “for a limited time only!” with a countdown clock. Which bias is being used?

a)

Herd Mentality

b)

Loss Aversion

c)

Hedonic Adaptation

d)

Fear of Missing Out (FOMO)

2.

Behavioral economics is …

a)

The study of how rational people make economic decisions

b)

The study of how irrational factors affect individual’s economic decisions

c)

The study of how economies around the world interact with each other

d)

The study of how investors choose which stocks to buy and sell

3.

The Fear of Missing Out, or FOMO, is…

a)

The effect of feeling a loss more than an equal gain

b)

The anxiety that an interesting or exciting event is happening without you

c)

Placing higher value on things you own

d)

The opposite of YOLO (You Only Live Once)

4.

People who are unbanked are most likely to...

a)

Use a mobile banking app

b)

Receive a monthly statement of their transactions

c)

Deposit their checks at the ATM

d)

Incur lots of fees at Check Cashers to access their money

5.

Mobile or email alerts for your checking account can notify you of...(hint: choose 3 correct answers)

a)

Low balances

b)

Unusual activity

c)

Deposits

d)

Credit Card transactions

6.
What is the benefit of direct deposit?
a)
Any overdraft fees are waived
b)
You don't have to spend time and energy depositing a check
c)
The funds from your paycheck are usually available between 3-5 business days
d)
You get a tax benefit from the Federal government
7.

How can you protect your checking account when using online and mobile banking? (hint: choose 2 correct answers)

a)

Use a strong password

b)

Sharing your pin # with only 1 person in case you forget it

c)

Connect to a secure WiFi network

d)

Opt-out of alerts to notify you of unusual activity

8.
Why is understanding a bank's fees particularly important for students or young adults?
a)
With less banking experience they may incur fees unknowingly
b)
They may have high balances in their account and are therefore likely to overdraft easily
c)
Banking is like insurance; being younger means higher fees
d)
Your credit score is heavily dependent on how well you bank
9.

Why is compound interest more beneficial than simple interest? (hint: choose 2 correct answers)

a)

Your money grows faster when it is compounded

b)

You earn interest on your interest

c)

Fees for compound interest are greater than simple interest

d)

Compound interest is hard to calculate, so fewer use it

10.

How do you avoid paying interest on your credit card (or any other loan for that matter)?

a)

Always make the minimum payment over time

b)

Pay interest 1st, then pay what you can on leftover balance

c)

Always make the full payment on time

d)

Pay the principal 1st, then pay what you can on interest

11.

Which of the following does NOT contribute to your credit score?

a)

Your payment history

b)

Which banks issued your credit cards

c)

Your debt-to-credit ratio

d)

Length of credit history

12.

Using the High Rate Method of paying off debt, you...

a)

pay off the loan which has the lowest balance regardless of the interest rate

b)

put extra money towards loans with the lowest interest rate

c)

put extra money towards loans with the highest interest rate

d)

make one large payment on the loan with the highest rate