Financial Attitudes and Behaviors Quiz

1 point(s)

Which cognitive bias refers to the tendency to avoid losses rather than acquiring equivalent gains?

Loss Aversion

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Confirmation Bias

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Herd Mentality

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Present Bias

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1 point(s)

What is an example of the Endowment Effect?

Selling an item at market price

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Buying a stock everyone else is buying

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Holding onto a car because you own it

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Avoiding an immediate reward for a future benefit

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1 point(s)

Which strategy helps mitigate the impact of cognitive biases in investment decisions?

Relying on gut feelings

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Following trends without research

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Diversifying investments

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Ignoring financial news

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1 point(s)

Societal norms have no impact on individual financial decision-making.

True

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False

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1 point(s)

Mental accounting refers to treating money differently based on its source or intended use.

True

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False

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3 point(s)

Definition

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Systematic deviation from rational judgment affecting decisions
Shared standards influencing behavior within a society
Fundamental beliefs and priorities guiding financial choices

Cognitive Bias

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Societal Norm

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Financial Value

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3 point(s)

Examples

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Holding onto a losing stock hoping it will recover
Buying a stock because everyone else is
Focusing only on positive reviews of a desired purchase

Loss Aversion

Correct Incorrect Correct answer

Herd Mentality

Correct Incorrect Correct answer

Confirmation Bias

Correct Incorrect Correct answer

1 point(s)

Arrange these steps in the correct order to mitigate cognitive biases: Recognize the bias, Seek objective advice, Diversify investments, Set up automatic rebalancing. (put the first step at the top)

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1 point(s)

Rank the following influences from most impactful to least impactful on financial behaviors: Personal Values, Societal Norms, Cognitive Biases, External Influences. (put the most impactful at the top)

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1 point(s)

How can recognizing and understanding cognitive biases improve your financial decision-making?

This response will be reviewed and graded after submission.

1 point(s)

Describe a personal or societal value that has influenced your financial decisions and provide an example of its impact.

This response will be reviewed and graded after submission.

Financial Attitudes and Behaviors Quiz