WorksheetsBanking/Bias
Total questions: 70
Worksheet time: 35mins
What is cognitive bias?
A systematic error in thinking based on perceptions, past experiences, and shortcuts rather than facts
A conscious decision to ignore facts to calculate probabilities with perfect accuracy
A type of memory loss that only affects short-term memory
A form of physical bias that can make joints hurt
Cognitive bias is a systematic error in thinking that happens when your brain relies on ________, past experiences, and shortcuts—rather than facts—to make decisions.
perceptions
logic
statistics
evidence
What is the main difference between cognitive bias and unconscious bias?
Cognitive bias is
always conscious, while unconscious bias
is always
unconscious thoughts
Cognitive bias develops from personal experiences and beliefs, while unconscious bias stems from cultural and social stereotypes learned through interaction
Cognitive bias is a specific type of memory that helps us recall information, while unconscious bias is a type of learning that improves decision-making
There is no difference between the two
Businesses might use cognitive biases to their advantage by:
influencing consumer decisions through targeted marketing
ignoring customer preferences and selling what they want
avoiding psychological research
discouraging brand loyalty
Fill in the blank:
________ is favoring information that supports your beliefs. For example, you might only read positive reviews about a product you want, ignoring warnings that it's overpriced.
Confirmation bias
Anchoring bias
Availability heuristic
Hindsight bias
Fill in the blank:
________ is relying too much on the first piece of information you receive. For example, if the first price you see for sneakers is 120,youmightthink 100 is a good deal—even if both are expensive.
Anchoring bias
Confirmation bias
Availability heuristic
Overconfidence effect
Fill in the blank:
________ is thinking you 'knew it all along' after an event occurs. For example, after losing money in a stock, you say, 'I knew it was risky,' but you didn’t adjust your plan before investing.
Hindsight bias
Confirmation bias
Anchoring bias
Availability heuristic
Fill in the blank:
The ________ is letting one positive trait shape your entire opinion of someone. For example, a store’s great customer service might make you assume everything they sell is of good value.
Halo effect
Recency bias
Confirmation bias
Anchoring effect
Fill in the blank:
________ is favoring people similar to yourself. For example, spending money to fit in with a group, even if it’s not in your budget.
Affinity bias
Confirmation bias
Anchoring bias
Halo effect
Fill in the blank:
________ is adopting others’ opinions to fit in. For example, buying what your friends have, even if it’s not a good deal.
Conformity bias
Anchoring bias
Confirmation bias
Availability bias
Fill in the blank:
________ is overvaluing information from authority figures. For example, taking financial advice just because it’s from someone 'successful' without checking facts.
Authority bias
Confirmation bias
Anchoring bias
Recency bias
Fill in the blank:
________ is making judgments based on a person’s name. For example, choosing a business or brand based only on its name rather than its prices or quality.
Name bias
Price bias
Brand bias
Quality bias
Why does bias happen?
The brain fills gaps in knowledge by spotting patterns, which helps us make quick decisions and learn socially—but those patterns can be wrong, leading to ________ thinking.
biased
creative
logical
systematic
Which of the following is an example of anchoring bias?
Only reading positive reviews about a product you want
Thinking you knew it all along after an event occurs
Relying too much on the first price you see for an item
Letting one positive trait shape your entire opinion of someone
Fill in the blank:
To overcome cognitive biases, it is important to ________ biases and recognize they exist and can distort judgment. Admit you might not be 100% objective when making big purchases or financial plans.
acknowledge
ignore
deny
amplify
Fill in the blank: To overcome cognitive biases, you should check ________ by identifying current factors, like overconfidence or the bandwagon effect, that may sway you.
influences
habits
outcomes
goals
Fill in the blank: To overcome cognitive biases, you should reflect on past ________ to notice recurring mistakes and adjust your approach.
patterns
successes
opinions
habits
Fill in the blank: To overcome cognitive biases, you should adopt a ________ mindset and be willing to learn from criticism and mistakes.
growth
fixed
rigid
closed
Fill in the blank: To overcome cognitive biases, play ________ advocate to explore the opposite perspective and build empathy.
devil’s
angel’s
friend’s
hero’s
Fill in the blank: To overcome cognitive biases, seek ________ views to get feedback and uncover blind spots.
diverse
similar
narrow
biased
Fill in the blank: To overcome cognitive biases, practice ________ and stay open to the possibility you might be wrong.
humility
arrogance
stubbornness
indifference
Which of the following is a sign of cognitive bias?
Attributing other people’s success to luck.
Celebrating others’ achievements.
Ignoring other people’s success.
Believing success is always earned.
What is a checking account primarily used for?
Long-term investments
Storing valuables
Daily expenses
Earning high interest
What is the term for putting money into your bank account?
Deposit
Endorsement
Reconciliation
Withdrawal
What must you do to a check before cashing or depositing it?
Tear it in half
Postdate it
Endorse it by signing the back
Write 'VOID' on it
What is a canceled check?
A check that has been voided, because you do not want it
A check that has been processed and paid by the bank
A check that has bounced, because you do not have enough funds
A check that has been lost
What is a bank statement?
A list of all bank branches nearest to you
A document showing your credit score with your credit report
A report showing all deposits, canceled checks, and fees
A receipt for a single transaction from the bank
What happens if you write a check without enough funds in your account?
The check will be voided
The check will be endorsed
The check will be processed normally
The check will bounce
What is a voided check used for?
To make a payment
To set up direct deposit or automatic payments
To withdraw cash
To endorse a check
What is postdating a check?
Depositing a check
Endorsing a check
Writing 'VOID' on a check
Writing a future date on a check
What is a routing number?
A nine-digit code identifying a financial institution
A number for customer service
A unique series of numbers identifying a bank account
A code for online banking
What is a restrictive endorsement?
Signing a check without any restrictions
Writing 'for deposit only' above the signature
Making the check payable to someone else
Writing 'VOID' on the check
What is a stop payment order?
A request to expedite the payment
A request to change the payee
A request to increase the payment amount
A request to cancel a payment before it’s processed
Why is it beneficial to have a checking account?
It is only for business use
It earns high interest
It keeps your money safe and insured
It limits your spending and daily activities
What is a money market account?
A business account
A checking account with no withdrawal limits
A type of credit card
A savings account with higher interest rates
What is a cashier’s check?
A check with no fees
A check guaranteed by the bank
A personal check
A check that can bounce
What is a special endorsement?
Signing a check without any restrictions
Writing 'VOID' on the check
Making the check payable to someone else
Writing 'for deposit only' above the signature
What is the purpose of a deposit slip?
To reconcile your bank statement every month
To outline the sources and amounts of money being deposited
To withdraw money from an ATM not at a normal location
To apply for a loan
What is a blank endorsement?
Writing 'VOID' on the check
Making the check payable to someone else
Signing the check without any restrictions
Writing 'for deposit only' above the signature
What is the main advantage of using online banking?
Unlimited cash withdrawals
No need
for a bank account
with high fees
Ability to perform transactions anytime, anywhere
Higher interest rates and banking fees
What is a certificate of deposit (CD)?
A type of checking account
A business account
A savings account with a fixed rate of return
A credit card with rewards
What is the purpose of a memo line on a check?
To write a note about the purpose of the check
To sign the check
To write the amount in words
To write the date
What is the main function of a savings account?
To manage daily expenses
To park money for short-term savings goals
To earn high interest
To pay bills online
What is a business account used for?
To combine personal and business funds
To keep business and personal funds separate
To earn high interest
To avoid taxes
What is a money order?
A type of credit card
A business account
A guaranteed form of payment
A personal check
What is the main benefit of using a debit card?
It allows you to spend more than you have
It earns rewards
It is only for online purchases
It provides easy access to your checking account funds
What is the purpose of a routing number on a check?
To identify the payee
To identify the check date
To identify the financial institution
To identify the check amount
What is the main advantage of a checking account over a savings account?
Higher interest rates
No limits on spending
Long-term investment
Higher withdrawal fees
What is the purpose of a bank account number?
To identify the financial institution
To identify the check date
To identify the account within a financial institution
To identify the check amount
What is the main purpose of a credit card?
To withdraw cash from ATMs
To make purchases on credit
To deposit funds
To earn interest
What type of bank account allows you to manage your daily finances?
Savings Account
Checking Account
Money Market Account
Certificate of Deposit
Which type of account is best for short-term savings goals?
Checking Account
Savings Account
Business Account
Credit Card
What is a key feature of a money market account?
Linked to a debit card
Higher interest rates than a traditional savings account
Unlimited withdrawals
No initial deposit required
Which type of savings account typically offers a fixed rate of return?
Checking Account
Savings Account
Business Account
Certificate of Deposit
What is the primary purpose of a business account?
To earn high interest
To separate personal and business funds
To avoid taxes
To provide loans
What is a common feature of credit cards?
No spending limit
Interest charges if balance is not paid in full
Unlimited cash back rewards
No annual fees
What can you do at an ATM?
Apply for a loan
Get a cashier's check
Open a new account
Deposit funds
What is a benefit of digital banking?
Perform transactions anytime, anywhere
Higher interest rates
Access to physical bank branches
Free international wire transfers
Why might someone use a cashier's check?
To earn interest
For small purchases
To guarantee payment for large purchases
To avoid bank fees
What is a limitation of money orders?
They are not guaranteed
They require a bank account
They have a maximum limit of $1,000
They can only be used internationally
What is a key feature of traveler's checks?
They can be used by anyone
They earn interest
They are safer than carrying cash
They are only valid in the issuing country
What is the main advantage of wire transfers?
They are free of charge
They are quick and secure
They earn rewards points
They can be canceled easily
What is a mortgage?
A loan to purchase real estate
A type of savings account
A credit card feature
A form of digital banking
What is the purpose of notary services at a bank?
To provide legal advice
To notarize legal documents
To open new accounts
To offer investment advice
What is a safe deposit box used for?
Storing digital files
Securing valuables
Withdrawing funds
Depositing cash
What is a benefit of foreign currency exchange at a bank?
Free travel insurance
Unlimited currency exchange
Avoiding high fees
Higher exchange rates
What does the FDIC insure?
Deposits up to $250,000 per depositor
All types of investments
International transactions
Only savings accounts
Why might someone choose a money market account over a traditional savings account?
For no initial deposit requirement
For linked debit card access
For unlimited withdrawals
For higher interest rates
What is a key consideration when applying for a credit card?
The color of the card
The card's weight
The terms and conditions
The bank's location
What is a strategic reason to use a wire transfer?
To send money quickly and securely
To avoid all fees
To earn rewards points
To cancel transactions easily
