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Behavioral Finance Quiz 5 (30 MCQs)

Quiz Instructions

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1. This value that drives financial behaviors focuses on what we think or believe about money, now how much money we actually have.
2. This is the general message of the Hasty Generalization technique:
3. What is the difference between "simple" and "compound" interest plans?
4. What do we learn from studying the historical performance of actively managed general equity funds?
5. Many Famous Economist agreed that humans are influenced by psychology (Emotion)
6. Refers to evaluating the performance of one person in contrast to another because youexperienced the individuals either simultaneously or in close succession
7. Explains that people are irrational and our own emotionsand bias have a role to play when making investmentdecisions.
8. In this technique, one side introduces negative facts or perceptions putting the other side at an immediate disadvantage:
9. Your values affect the way that you use money because .....
10. What is the situation where market prices collapse significantly and suddenly?
11. Which one of below is the origin of Prospect Theory
12. Mr. and Mrs. Andrews saved $ 15, 000 to buy their dream vacation home. The money earns 5% in a money market account. They also bought a new car for $ 11, 000 which is financed with a three-year car loan at 15%. Which bias is at work?
13. What does availabilty mean?
14. Which of the following businesses is most likely to use influencer marketing?
15. Which type of decision requires little planning/thought and is one that you make on a regular basis?
16. Which of the following would be most helpful in motivating your present self to delay gratification?
17. Needs and wants are important to distinguish so that we can prioritize our money. The key word that separates these two things is that needs are ....., where as wants are just items we would like to have.
18. The PACED decision making model is an organized way to think about your problem, your options, how those align with your values, and what you opportunity cost would be to help you make a good decision. Why is it important to have good decision making skills?
19. Which of the following is an example of interest?
20. Getting caught up with purchasing material goods
21. A man trades more frequently than a woman because of?
22. What is given up in order to get something else
23. Choose your preferred gamble, C or D:
24. This advice is apt for which behavior/ bias:' Make the client realize that there is nothing like Good Luck or Bad Luck'
25. What is "savings" ?
26. It is the opposite of common sense and clear, measured judgement. It can lead to missed opportunities and poor decision making.
27. For something to have value, it must
28. Recall the mean posterior belief from the Normal-Normal-Model of Bayesian Updating:$s\cdot\frac{\frac{1}{\sigma^2}}{\frac{1}{\sigma^2}+\frac{1}{\tau^2}}+\mu_0\cdot\frac{\frac{1}{\tau^2}}{\frac{1}{\sigma^2}+\frac{1}{\tau^2}}$ What is the meaning of the term $\frac{\frac{1}{\sigma^2}}{\frac{1}{\sigma^2}+\frac{1}{\tau^2}}$
29. Possessing the knowledge and skills to effectively manage finances and be an informed consumer
30. I am a high school student from a small town in rural Kansas who has created a large, engaged following on Instagram. Companies compensate me to use my influence to create a desire in my followers to purchase certain products. Which of the following statements is true?
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