Exam (elaborations) - econ 101 pfp chapter 19 complete q&a (2022/2023.)

Why is knowledge of actual human behavior arguably more important for Personal Financial Planning (PFP) than for any other area of finance? A. Due to PFP's closeness to human actions. B. Due to PFP's emphasis on practicality. C. Due to the irrational nature of most personal finance decisions. D. Both a and b. E. Both b and c. 2. Which of the following is a component of behavioral financial planning operations? A. Estate planning. B. Traditional money planning and making more efficient financial decisions. C. Life planning. D. Both a and b. E. Both b and c. 3. Behavioral economics and behavioral finance: A. Consider the "ideal" person. B. Consider the "irrational" person. C. Examine people as they actually are. D. Both a and b. E. None of the above. 4. What is the goal of an assessment of behavioral financial planning? A. To understand and evaluate the contribution of behavioral analysis to PFP. B. To maximize revenue. C. To maximize profits. D. Both a and b E. None of the above. 5. Which of the following is not an assumption of traditional finance? A. You are assumed to act logically all the time in seeking to maximize your pleasure. B. You have perfect knowledge of all the information you need to make proper decisions. C. You have full capability for recalling past experiences accurately. D. You also have the intellectual capacity to make the right decisions at all times. E. All of the above are assumptions of traditional finance. 6. Which of the following best defines behavioral finance? A. The study of human makeup and actions that explain logical economic and financial behavior. B. The study of human makeup and actions that result in deviations from logical economic and financial behavior. C. The study of market actions that explain logical economic and financial behavior. D. Both b and c. E. None of the above. 7. Which of the fol