FHCE3200 FINAL GOREN UPDATED
ACTUAL Exam Questions and CORECT
Answers
Financial capacity can be defined as:
A) How well an individual understands financial information
B) How well an individual can manage their finances based on their access to financial resources
C) How well an individual understands accounting
D) How well an individual can manage their finances based on their personality and psychology
- CORRECT ANSWER B
An individual's willingness to engage in a risky financial behavior is known as their
A) Financial risk capacity
B) Financial risk efficacy
,C) Financial risk awareness
D) Financial risk tolerance - CORRECT ANSWER D
Which of the following factors is not associated with an individual's financial risk tolerance?
A) Educational attainment
B) Gender
C) Wealth
D) All of the above are associated with risk tolerance - CORRECT ANSWER D
Many people make the mistake of believing that they will never experience painful losses. This
mental fallacy is also known as:
A) Loss aversion
B) Confirmatory bias
,C) Status quo bias
D) Optimism bias - CORRECT ANSWER D
A preference for leaving things as they are is known as:
A) Loss aversion
B) Physical inertia
C) Status quo bias
D) Negative momentum - CORRECT ANSWER C
People's propensity to procrastinate on financial decisions can ironically be used to their benefit.
Which of the following exemplifies this effect?
A) Giving them numerous choices when they are trying to make a decision
B) Designating a default option that generally leads to good outcomes
, C) Giving them complex puzzles to solve before they make the decision
D) All of the above - CORRECT ANSWER B
People with a ____________ tend to prefer spending less money today and save more for the
future.
A) Future orientation
B) Present orientation
C) Status quo bias
D) High risk tolerance - CORRECT ANSWER A
Which of the following best describes the concept of the hedonic treadmill?
A) It takes constant work to maintain even a minimal baseline of happiness
ACTUAL Exam Questions and CORECT
Answers
Financial capacity can be defined as:
A) How well an individual understands financial information
B) How well an individual can manage their finances based on their access to financial resources
C) How well an individual understands accounting
D) How well an individual can manage their finances based on their personality and psychology
- CORRECT ANSWER B
An individual's willingness to engage in a risky financial behavior is known as their
A) Financial risk capacity
B) Financial risk efficacy
,C) Financial risk awareness
D) Financial risk tolerance - CORRECT ANSWER D
Which of the following factors is not associated with an individual's financial risk tolerance?
A) Educational attainment
B) Gender
C) Wealth
D) All of the above are associated with risk tolerance - CORRECT ANSWER D
Many people make the mistake of believing that they will never experience painful losses. This
mental fallacy is also known as:
A) Loss aversion
B) Confirmatory bias
,C) Status quo bias
D) Optimism bias - CORRECT ANSWER D
A preference for leaving things as they are is known as:
A) Loss aversion
B) Physical inertia
C) Status quo bias
D) Negative momentum - CORRECT ANSWER C
People's propensity to procrastinate on financial decisions can ironically be used to their benefit.
Which of the following exemplifies this effect?
A) Giving them numerous choices when they are trying to make a decision
B) Designating a default option that generally leads to good outcomes
, C) Giving them complex puzzles to solve before they make the decision
D) All of the above - CORRECT ANSWER B
People with a ____________ tend to prefer spending less money today and save more for the
future.
A) Future orientation
B) Present orientation
C) Status quo bias
D) High risk tolerance - CORRECT ANSWER A
Which of the following best describes the concept of the hedonic treadmill?
A) It takes constant work to maintain even a minimal baseline of happiness
