Behavior Economics
Sunk costs are when we spend time, money, or effort that...
Cannot be recovered
How are credit unions and banks different?
Banks are owned by shareholders, while credit unions are owned by members
With investing, there is a potential reward for taking on risk. Generally,...
the more risk you take on, the higher the potential reward.
Shira is trying to decide between getting a debit card, a prepaid debit card, and a credit card. Which cards are the same?
All 3 cards are completely different
3 possible answers
What account fees should you avoid with savings accounts?
Maintenance fees
Minimum balance fees
Transaction fees
You spend an entire Saturday going to car dealerships in search of a used car. You spend hours looking at cars and even test drive a few, but there are none you like that fit your budget. What is the sunk cost you should ignore when deciding whether or not to buy a car that day?
The time you spent looking for cars that day
How much money should you try to save in your emergency fund?
3-6 months worth of expenses
What is a fund that tries to match the returns of a specific market or market section.
Index Fund
True or False
Credit and Debit allow you to make purchases in a store or online
True
Compound interest can best be defined as...
Interest on the principal PLUS interest on interest
what is Overprecision
An exaggerated certainty that your answer is correct.
Experts recommend that you accumulate enough to cover 3 to 6 __________________ of expenses in your emergency fund.
Months
What is a fund with shares that can be traded on the market throughout the day, like stocks.
Exchange Traded Fund (ETF)
Taylor is about to go car shopping, and she has $5000 saved that she can use for a down payment while still having extra cash in her emergency fund. She expects the exact model car she’s looking for to cost $35,000. If her top priority is having the lowest monthly payments possible, which advice should she follow?
Put in $5000 for your down payment, and choose a loan with a long term length
What is simple interest?
The interest earned on the original principal only
What is Overestimation
What is the primary purpose of a digital wallet?
Digital wallets focus on contactless transactions with businesses
True or False?
A 'ROTH IRA' is money that you the individual puts into a retirement account.
True
What is a good reason to choose a 30-year, fixed-rate mortgage?
You want low, predictable monthly payments
A saving account is used to ...
To save money over time
What is Overplacement
When people mistakenly believe they are better than others.
Jocelyn gets a text alert from the bank that her balance has dropped below $100. She has not spent money her and wonders what she should do.
Contact her bank immediately because someone is spending her money
What the difference between an online broker and a robo-advisor?
Robo is someone else Online is you
The average APR for a payday loan is closest to …
400%
Banks may charge you a fee if you make ____________ with your savings account.
Excessive transactions