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Financial Behaviors and Values, Cognitive Bias Quiz

Total questions: 20

Worksheet time: 10mins

Name
Class
Date
1.

How do strong inner values affect money habits?

a)

They lead to more charitable donations to religious organizations and community clubs.

b)

They translate to trusting one's gut and feeling more confident in financial transactions.

c)

They result in more spending on luxury items.

d)

They cause people to avoid financial planning and instead focus on themselves.

2.

What is the effect of social values on money habits?

a)

They lead to a preference for working alone all of the time.

b)

They influence money habits based on family and social relationships.

c)

They influence money habits based on a need for personal space.

d)

They cause people to focus on outer success.

3.

What does the sense of belonging and relatedness with family, neighbors, and friends describe?

a)

Inner values

b)

Social values

c)

Physical values

d)

Financial values

4.

Which of the following is an effect of strong feelings of autonomy and security on money habits?

a)

Increased spending on luxury items

b)

More confidence in financial transactions

c)

Avoidance of financial planning

d)

Increased charitable donations

5.

What is one of the areas of influence for social values?

a)

Desire for freedom and independence

b)

Control over goals and priorities

c)

Charitable giving and public service work

d)

Need for personal space

6.

What do physical values primarily relate to?

a)

The tangible aspects of life, the external world, our physical health and well-being

b)

How much money we have

c)

Our emotional well-being

d)

Our social relationships

7.

Which of the following is NOT an area of influence for physical values?

a)

Amount of space we need to feel comfortable

b)

Sufficiency of money

c)

Health of our bodies

d)

Appreciation of art, fashion, architecture and design

8.

What might strong physical values lead to if left unchecked?

a)

Overspending on material possessions

b)

Saving more money

c)

Investing in stocks

d)

Avoiding material possessions

9.

Which of the following is an area of influence for financial values?

a)

Sufficiency of money

b)

Health of our bodies

c)

Desire for pleasure and comfort

d)

Appreciation of art

10.

What becomes easier when you remain true to your values and goals?

a)

Making hard choices

b)

Making more money

c)

Improving physical health

d)

Building social relationships

11.

Malik frequently scrolls on social media,  making small, frequent purchases for things he doesn’t really need. He enjoys ordering something and getting quick deliveries, but then finds that he keeps coming back for more. Which Cognitive Bias is probably affecting Malik's thinking?

a)
Sunk Cost Fallacy
b)

Endowment Affect

c)

Herd Mentality

d)

Hedonic Adaptation

e)
Confirmation Bias
12.

Naomi is considering a gap year after high school to travel and do a coding bootcamp that seems like a great opportunity based on her interests and goals.. However, she’s doubting her decision because most people from her high school plan to go to a 4-year university.

What cognitive bias is most likely causing her to rethink her plans?


a)
Confirmation bias
b)
Self-serving bias
c)

Herd Mentality

d)

Endowment Affect

e)

FOMO

13.

Blake wants to join friends at a one-night only concert but hasn’t saved enough money. After seeing all of her friends post about the concert on IG, she takes out a personal loan at a high interest rate to buy her concert ticket. What cognitive bias most likely Blake to make his decision?

a)
Confirmation bias
b)
Anchoring bias
c)

Endowment Affect

d)
Sunk cost fallacy
e)

FOMO

14.

Grace and her friends splurge on an IMAX movie, but the movie isn’t very good. She still feels compelled to finish it since she already paid. What cognitive bias makes her think she needs to suffer through the rest of the movie?

a)
Anchoring effect
b)
Sunk cost fallacy
c)
Confirmation bias
d)

FOMO

e)

Endowment Effect

15.

Daniel has heard stories losing lots of money when the stock market crashed. He decides it’s too risky to invest and avoids it entirely. Which cognitive bias is affecting Daniel's decision?

a)

Loss Aversion

b)
Confirmation bias
c)

FOMO

d)
Overconfidence effect
e)
Sunk cost fallacy
16.

Sally is shopping at a thrift store. She sees the same Jacket that she is wearing for with a tag of $50. She decides that the Jacket is not worth that amount of money. She visits another thrift store and the owner offers her $75 for her jacket, but Sally decides her jacket is worth more than that. What cognitive bias is affecting Sally's decision making?

a)
Endowment effect
b)

FOMO

c)
Anchoring bias
d)
Sunk cost fallacy
e)
Confirmation bias
17.

Edgar in interesting in purchasing an new cryptocurrency. He watches videos and infomercials that tell him that the cryptocurrency is a great buy. He also reads articles in financial magazines that encourage the purchase of the cryptocurrency. He decides to make the purchase. What cognitive bias is influencing his decision?

a)

Endowment Effect

b)
Overconfidence effect
c)
Confirmation bias
d)
Anchoring bias
e)

FOMO

18.

Isabella is new to investing but is convinced she can choose the next popular stock and make millions without any research. She ignores all advice to start slowly with diversified funds. What cognitive bias is this?

a)

Herd Mentality

b)
Overconfidence bias
c)
Loss aversion
d)
Confirmation bias
e)

FOMO

19.

What is cognitive bias?

a)
Cognitive bias is the ability to think critically.
b)
Cognitive bias is a method of scientific research.
c)
Cognitive bias is a type of mental illness.
d)

Cognitive bias is a systematic error in thinking.

e)
Cognitive bias refers to a random error in judgment.
20.

What causes cognitive bias?

a)
Cognitive bias is influenced by dietary choices.
b)
Cognitive bias is caused by environmental factors only.
c)
Cognitive bias is solely a result of education level.
d)
Cognitive bias is caused by genetic predisposition.
e)

Cognitive bias is caused by our brain's desire to be efficient.