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WorksheetsFinancial Literacy Unit 1 Review
Total questions: 20
Worksheet time: 14mins
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?
Inner
Social
Physical
Financial
You overhear your friend Ginny say, "I made a budget for myself in my personal finance class and used my values to decide how I want to use my money." What does Ginny mean by this?
Ginny used the value of her bank account balance to decide how to use her money
Ginny asked her friends and family for advice to decide how to use her money
Ginny followed recommendations she saw on social media to decide how to use her money
Ginny identified what is important to her and used that knowledge to decide how to use her money
What are social values, as they pertain to money?
How you, personally, care and think about finances
How your family, friends, and community members impact your feelings about money
How companies and advertisements make you feel about money
How banks and other financial institutions treat you and your money
Behavioral economics...
Is a field of economics that studies people who make rational and objective decisions
Analyzes how different economies around the world behave over time
Tracks and examines stock market trends over a certain period of time
Combines economics and psychology to study why people behave the way they do in the real world
Cognitive bias is...
An error in the way we think that can influence our decisions
The desire to seek out information that confirms our existing beliefs
The belief that our abilities are better than they actually are
The concept of placing more value on an item when we own it
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...
Mental Accounting
The Sunk Cost Fallacy
Fear of Missing Out
The Endowment Effect
Which of the following is TRUE about cognitive biases?
It is easy to recognize when cognitive biases are influencing our own decisions
There is rarely anything you can do to combat a cognitive bias’ influence
There are only a handful of cognitive biases that exist
Awareness is often the first step to overcoming the influence of a cognitive bias
Andrew wants to buy a specific model of a new car. He conducts research and finds many resources that highlight the benefits of that car model. Which cognitive bias might be influencing Andrew's decision making?
Confirmation Bias
Hedonic Adaptation
The Sunk Cost Fallacy
Overconfidence
Mina wants to start using an investment app that all of her friends are raving about. She hasn’t done any research on the app, but she trusts her friends’ judgment. At home, Mina’s mom points out that Mina is being influenced by FOMO and herd mentality. All of the following are things Mina can do to overcome these cognitive biases EXCEPT…
Take time to reflect and identify why she is so eager to use the app
Watch a positive video about the app, download the app, and start using it that day
Ask people outside her friend group for their opinions and perspectives
Seek out reviews that talk about the disadvantages of using the app
What does “girl math” typically refer to?
A specific branch of mathematics taught to girls
A humorous way to describe how some people justify spending habits or financial decisions
An advanced mathematical concept developed by female mathematicians
A new educational curriculum aimed at encouraging girls to study math
What was one result of sports betting becoming legal in more states?
Gambling became completely illegal for minors
Casinos were built in some schools
Gambling apps became more accessible on devices
Fewer people began gambling
Jordan has been investing for just six months and has made some gains in the stock market. He starts believing he can “beat the market” consistently and ignores advice from financial experts. Which cognitive bias is Jordan likely experiencing?
Confirmation Bias
Overconfidence Bias
Mental Accounting
Herd Mentality
You see an advertisement promoting a sale “for a limited time only!” with a countdown clock. Which bias is being used?
Herd Mentality
Loss Aversion
Hedonic Adaptation
Fear of Missing Out (FOMO)
The irrational ways that we process information & make decisions using our own perspective and incomplete information.
Cognitive biases
Hedonic Adaptation
The Endowment Effect
Overprecision
Peter can choose from two retirement accounts. Fearing a loss, he opts for the more conservative one. This is a type of
Confirmation Bias
Overconfidence
Loss Aversion
Fear of Missing Out (FOMO)
Paula sees her friends' pictures of a concert that she couldn't attend because of work. She feels like an outsider.
Paula is experiencing Fear of Missing Out (FOMO)
Paula is experiencing Herd Mentality
Paula is experiencing Loss Aversion
Paula is experiencing Confirmation Bias
Marie's car has needed over $2000 in repairs. She resists selling it because she has spent so much money. This is...
The Endowment Effect
Confirmation Bias
Overconfidence Bias
Sunk Cost Fallacy
You are new to a city and find two restaurants near each other that offer a similar menu. You pick the more crowded one.
This is an example of Fear of Missing Out (FOMO)
This is an example of Herd Mentality
This is an example of Sunk Cost Fallacy
This is an example of Overvaluing
While researching Apple, Remy tends to focus on positive stories about their profits instead of stories about poor sales
Remy is experiencing the Endowment Effect
Remy is experiencing Overconfidence Bias
Remy is experiencing Herd Mentality
Remy is experiencing Confirmation Bias
Which of the following best describes what a cognitive bias is?
A rational decision that is based on research and facts
The belief that we are right until someone provides information that contradicts our belief
An error in the way we think that can influence our decisions
The belief that a person should change their opinions when new facts arise
