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FCEE Ch1+2 Test

Total questions: 24

Worksheet time: 29mins

Name
Class
Date
1.

You go to a restaurant and order a big meal. Even though you’re full, you keep eating because it was expensive. This is an example of...

a)

Sunk cost fallacy

b)

Confirmation bias

c)

Anchoring effect

d)

Availability heuristic

2.

Which of the following is usually a benefit of being a member at a credit union?

a)

Higher interest rates and lower fees

b)

Lower interest rates and higher fees

c)

Higher interest rates and higher fees

d)

Lower interest rates and lower fees

3.

Which of the following is typically a feature of a savings account but not a checking account?

a)

Ability to withdraw money from an ATM

b)

Ability to write checks

c)

Ability to earn interest

d)

Ability to use a debit card

4.

Which of the following is TRUE when comparing savings accounts and certificates of deposit?

a)

Savings accounts are FDIC insured while certificates of deposit are not

b)

Savings accounts allow you to access your money at all times while certificates of deposit require your money to be left alone for a set period of time

c)

Savings accounts typically have a higher interest rate than certificates of deposit

d)

Both savings accounts and certificates of deposit allow you to deposit money at any time

5.

Brynn just started her first job and needs a way to manage her daily financial transactions. What is the purpose of a Checking Account for Brynn?

a)

To invest money for long-term growth.

b)

To make cash withdrawals, deposits, purchases, and pay everyday expenses and bills.

c)

To save money with high interest rates.

d)

To borrow funds for large purchases.

6.

You should review the transactions on your account either online or on your printed bank statement to

a)

ensure you have not become a victim of identity theft.

b)

ensure you have enough money every month available for savings.

c)

calculate your average minimum balance for the month.

d)

see if you can afford the monthly payment on a credit purchase.

7.

Which of the following best describes the purpose of an emergency fund?

a)

To save for vacation

b)

To invest in the stock market

c)

To cover unexpected expenses

d)

To pay for regular bills

8.

Which of the following is not a common feature of a checking account?

a)

Writing checks

b)

High interest rates

c)

Direct deposit

d)

ATM access

9.

What is the 50-20-30 Rule in personal finance?

a)

50% savings, 20% debt repayment, 30% necessities

b)

50% necessities, 20% savings and debt repayment, 30% flexible spending

c)

50% flexible spending, 20% necessities, 30% savings

d)

50% debt repayment, 20% flexible spending, 30% necessities

10.

What is FOMO?

a)

Fear of missing a payment

b)

Fear of missing out on an exciting or interesting event

c)

Fear of losing money

d)

Fear of overdrawing an account

11.

Cognitive bias is...

a)

An error in the way we think that can influence our decisions

b)

A method to improve our decision-making process

c)

A strategy used by financial institutions to attract customers

d)

A type of financial investment

12.

What is the term for the tendency to search for, interpret, and remember information in a way that confirms one's preconceptions?

a)

Overestimation

b)

Overjustification

c)

Overprecision

d)

Confirmation Bias

13.

What is the term for the tendency to avoid losses rather than acquiring equivalent gains?

a)

Overestimation

b)

Overjustification

c)

Loss Aversion

d)

Overplacement

14.

"Monday Morning Wrestlers" are rarely surprised at the results of Wednesdays meets. This tendency to believe that they knew the outcome of the meets would be best explained by:

a)

over confidence

b)

hindsight bias

c)

intuition

d)

illusory correlation

e)

random sampling

15.
What life value reflects the following statement? - Strong physical values might translate to overspending on material possessions if left unchecked, but could also show up in our desire for quality. - This person is willing to spend more for craftsmanship and design.
a)
Inner
b)
Social
c)
Physical
d)
Financial
16.
When people have the tendency to think they know more than they do
a)
Intuition
b)
Hindsight bias
c)
Overconfidence
d)
Perceiving order in random events
17.

Naresh started a new job and is having some of his paycheck deposited directly into a savings account. Which of the following values BEST explains why Naresh does this on a regular basis?

a)

Inner

b)

Social

c)

Physical

d)

Financial

18.

What are social values, as they pertain to money?

a)

Values that influence how you interact with others financially

b)

Values that determine your physical well-being

c)

Values that are related to your personal health

d)

Values that are related to your inner self

19.

You go to the grocery store to buy dog food. The store has three sizes available:


A 20-lb bag for $23.44

An 8-lb bag for $9.88

A 40-lb bag for $49.00


Which size bag has the lowest cost per pound rounded to the nearest cent?

a)

The 8-lb bag

b)

The 20-lb bag

c)

The 40-lb bag

d)

I have a cat

20.

Which of the following has the cheaper unit rate or unit price for eggs: $.99 for 6 eggs, $1.32 for 12 eggs, $1.49 for 16 eggs?

a)

$.99

b)

$1.32

c)

$1.49

d)

They have the same unit rate and unit price. 

21.

Which is the best buy?

7 pencils for $1.40

6 pencils for $1.26

8 pencils for $1.88

a)

7 pencils for $1.40

b)

6 pencils for $1.26

c)

8 pencils for $1.88

d)

All have the same unit price

22.

Pepsi

Dollar General $1.75 42.26 oz

Target $2.99 67 oz

Publix $2.39 20 oz

Which store has the lowest unit price?

a)

Dollar General

b)

Target

c)

Publix

23.
Which is the better buy?
a)
A 6 pack of sodas for $2.56
b)
A 12 pack of sodas for $4.00
c)
4 twelve packs for $12.00
24.

Determine which Mazola Corn Oil cost the least per ounce.

320 oz. for $17.99

128 oz. for $9.49

40 oz. for $3.49

a)

320 oz.

b)

128 oz.

c)

40 oz.

d)

None, all three cost the same per ounce.