{{asɛmtiNe Ɔkyerɛwfo}} | Nhomakorabea | Nneɛma a ɛma wotumi yɛ ade

Ɛhia

2

Why is it beneficial for Naresh to deposit part of his paycheck into a savings account regularly?

To use the savings for immediate purchasing needs

To build an emergency fund for unexpected expenses

To increase his spending money for the current month

To avoid paying taxes on his income

Ɛhia

2

What does Ginny mean when she says she used her values to decide how she wants to use her money in her budget?

She followed a budget template from her finance class without changes

She based her budget on how much money she earns

She allocated money only to immediate needs without long-term planning

She chose spending categories that align with her personal beliefs and priorities

Ɛhia

2

How do social values influence individuals' attitudes towards money?

They determine how much money an individual can earn.

They set strict rules about the types of investments one can make.

They shape beliefs about spending, saving, and sharing money in society.

They are unrelated to financial decisions and budgeting.

Ɛhia

2

What does behavioral economics study?

The calculation of interest rates in financial markets

The impact of government policies on market equilibrium

The history of economic theories

The influence of psychological factors on economic decision-making

Ɛhia

2

What is cognitive bias?

A type of mental illness

A technique for enhancing memory retention

A systematic error in thinking that affects judgments and decisions

A method for increasing critical thinking skills

Ɛhia

2

The scenario where you continue eating a large meal even though you're full because it was expensive is an example of which cognitive bias?

Availability Heuristic

Anchoring Bias

Sunk Cost Fallacy

Confirmation Bias

Ɛhia

2

Which of the following situations best illustrates the sunk cost fallacy?

Choosing to go to a new restaurant based on a recommendation.

Switching careers to follow a personal passion despite financial risk.

Continuing to watch a movie you don’t enjoy because you paid for the ticket.

Saving money from a bonus to invest in a new opportunity.

Ɛhia

2

Which of the following is TRUE about cognitive biases?

Cognitive biases only affect individuals with mental health issues.

Cognitive biases are systematic patterns of deviation from norm or rationality in judgment.

Cognitive biases are random and have no impact on decision-making.

Cognitive biases always lead to more rational decision-making.

Ɛhia

2

Andrew has his eye on a particular car model and finds multiple sources praising its features while he is researching. What cognitive bias is likely affecting Andrew’s decision-making process?

Availability Heuristic: Relying on recent information he has encountered about the car model.

Confirmation Bias: Seeking out information that supports his existing preference for the car model.

Bandwagon Effect: Choosing the car model because it is popular among others.

Overconfidence Bias: Believing he knows everything there is to know about the car model.

Ɛhia

2

Mina wants to start using an investment app that all of her friends are raving about. She hasn’t done any research on the app, but she trusts her friends’ judgment. At home, Mina’s mom points out that Mina is being influenced by FOMO and herd mentality. All of the following are things Mina can do to overcome these cognitive biases EXCEPT:

Evaluate the app’s performance and user feedback from a variety of platforms.

Focus solely on her friends' recommendations without considering other opinions.

Seek advice from multiple sources including financial experts and user reviews.

Conduct independent research on the investment app to assess its features and risks.

Wk 1: Exit Ticket 1.1, 1.2 and 1.3

Wk 1: Exit Ticket 1.1, 1.2 and 1.3

Why is it beneficial for Naresh to deposit part of his paycheck into a savings account regularly?

What does Ginny mean when she says she used her values to decide how she wants to use her money in her budget?

How do social values influence individuals' attitudes towards money?

What does behavioral economics study?

What is cognitive bias?

The scenario where you continue eating a large meal even though you're full because it was expensive is an example of which cognitive bias?

Which of the following situations best illustrates the sunk cost fallacy?

Which of the following is TRUE about cognitive biases?

Andrew has his eye on a particular car model and finds multiple sources praising its features while he is researching. What cognitive bias is likely affecting Andrew’s decision-making process?

Why is it beneficial for Naresh to deposit part of his paycheck into a savings account regularly?

What does Ginny mean when she says she used her values to decide how she wants to use her money in her budget?

How do social values influence individuals' attitudes towards money?

What does behavioral economics study?

What is cognitive bias?

The scenario where you continue eating a large meal even though you're full because it was expensive is an example of which cognitive bias?

Which of the following situations best illustrates the sunk cost fallacy?

Which of the following is TRUE about cognitive biases?

Andrew has his eye on a particular car model and finds multiple sources praising its features while he is researching. What cognitive bias is likely affecting Andrew’s decision-making process?