Topic 1.1
Internal finances include your:
a. financial knowledge.
b. feelings about money.
c. attitudes about money.
d. all the above
d. all the above
Human capital is your most valuable
a. asset
b. liability
c. skill
d. ability
a. asset
Your willingness to engage in a risky behavior that entails the possibility of a financial loss is ____
a. loss-avoidance
b. risk tolerance
c. feelings of control
d. risk-taking
b. risk tolerance
What do the letters of S-M-A-R-t stand for?
S- Specific
M- Measurable
A- Attainable
R-Relevant
T-Timely
Which of the following goes with pre-committing to decisions :
a. using deadlines
b. pay bills right away
c. financial planner
d. focusing on the small things
a. using deadlines
What is GDP?
Gross Domestic Product
Social capital includes which of the following
a. human capital and networking
b. formal networks and friend groups
c. informal networks and formal networks
d. none of the above
c. informal networks and formal networks
Your cognitive evaluation of the potential gains and losses associated with a course of action is referred to as what?
a. risk-taking
b. project think
c. loss-aversion
d. risk perception
d. risk perception
How long are long-term goals?
a. 9 years
b. 10 plus years
c. 2 days
d. 3 months
b. 10 plus years
Heuristics is based on what type of experience
a. yesterday
b. past
c. not experience-based
d. future
b. past
How much of GDP is consumer spending?
a. 46%
b. 50%
c. 60%
d. 66%
d. 66%
Examples of human capital including which of the following
a. formal education
b. health
c. skill development
d. All of the above
d. All of the above
The relationship between wealth accumulation and risk tolerance is referred to as what?
a. equal
b. no result
c. positive
d. negative
c. positive
Which of the following refers to the time between creating a goal and actually achieving the goal?
a. Time in the middle
b. Goal time horizon
c. Time to save
d. timeline
b. Goal time horizon
What does status quo bias mean?
a. liking to keep things exactly the same
b. experience-based ideas
c. loves to make change
d. hates losing
a. liking to keep things exactly the same
How does consumer spending affect GDP?
a.Spending decrease, GDP increase
b.spending increase, GDP decrease
c.spending increase, GDP increase
d.no relationship
c.spending increase, GDP increase
Individuals with a professional degree expect to earn what amount more than those with only a high school diploma over a lifetime.
a. $40,000
b. $1.5 million
c. $ 2 million
d. $ 10 billion
c. $ 2 million
What percent of time did the stock market generate a positive annual return from 1824-2013
a. 45%
b. 120%
c. 71%
d. 47%
c. 71%
What is included in your compass?
a. short-term goals
b. long-term goals
c. daily tasks
d. both short term goals and daily tasks.
d. both short term goals and daily tasks.
What term matches the following definition the best? "becoming over confident in future decision-making"
a. confirmatory bias
b. status quo bias
c. procrastinating
d. optimism bias
a. confirmatory bias
What is your internal world view of finances? (HINT: think of the window in the textbook)
Feelings of control,financial knowledge and financial risk tolerance
As you age, human capital ______ and financial wealth____
a. increase; increase
b. increase; decrease
c. decrease; decrease
d. decrease; increase
d. decrease; increase
Higher financial risk tolerance will help you engage in financial behaviors that have ____ long-term pay-offs
a. lower
b. equal
c. greater
d. none of the above
c. greater
Identify a statement that represents a specific goal
a. Retire at age 70 with 100,000 annual income
b. It will happen in three months
c. I will start saving tomorrow
d. I do not know what I want
a. Retire at age 70 with 100,000 annual income
What are the steps for the decision making model? Please list out.
1.Identify the problem or issue
2.Gather data
3.Analyze the situation and data
4.Monitor decision outcomes