Cognitive Biases
A person is interested in buying a particular stock. They only read news articles and blog posts that praise the company and ignore any negative reports about its financial performance. This is an example of which cognitive bias?
Confirmation Bias
Which of the following is an example of income from a financial investment?
Capital gains
dividends
interest
Which of the following describes a key difference between federal, state, and local taxes?
What they fund and who collects them
Which of the following describes the purpose of a SMART goal?
A specific and measurable goal with an appointed end time
A student sees that the original price of a textbook was $150 and is now on sale for $75. They think that $75 is a great price, even though they could find a used version for $20 elsewhere. This decision is influenced by which cognitive bias?
anchoring bias
You bought a stock for $100 and sold it for $150. How much was your capital gain?
$50
Which of the following describes a key difference between federal and state taxes?
What they fund
Give me an example of a smart goal.
Answers vary
An investor decides to hold onto a losing stock, hoping it will eventually regain its value, rather than selling it to cut their losses. This behavior is most strongly influenced by which concept?
loss aversion
Your friend receives a small cash payment every three months from a company they own stock in. What is this payment called?
dividends
Which of the following is an example of a local tax?
property tax
local sales tax
What is the main purpose of determining your personal values in a Financial Literacy class?
To identify what is important to you, which will guide your financial decisions.
A group of friends decides to invest in a new technology stock because they all see that it is trending on social media, even though they have not researched the company's financials. This is an example of which cognitive bias?
herd mentality
You put $1,000 into a savings account at a bank. The bank pays you 2% of your money each year. What is this payment called?
Interest
Which of the following describes the purpose of a tax?
To fund public services
Why is it important to research career choices that align with your personal values?
You do not want to be stuck in a job that you hate
A cognitive bias is best described as what?
A shortcut for our minds
When a person buys a stock simply because many other people are buying it, they are most likely demonstrating which concept?
Herd Mentality
Free 500
Free 500
Which of the following is a characteristic of a well-defined 'dream job'?
It is a job that caters to your interests and strengths as well as aligns with your values.