FHCE3200 FINAL GOREN Exam 2025 Questions and Answers

FHCE3200 FINAL GOREN Exam 2025
Questions and 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




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,D) How well an individual can manage their finances based on their personality

and psychology - --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 - --Answer --D


Which of the following factors is not associated with an individual's financial risk

tolerance?




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,A) Educational attainment




B) Gender




C) Wealth




D) All of the above are associated with risk tolerance - --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




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, B) Confirmatory bias




C) Status quo bias




D) Optimism bias - --Answer --D


A preference for leaving things as they are is known as:




A) Loss aversion




B) Physical inertia




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