511 - Module 2

Question 1

Illusion of control

Answer 1

You believe you can control the outcome of an event when you cannot.

Question 2

Money illusion

Answer 2

You have a tendency to think one dollar has the same value today, tomorrow, and into the future, without considering inflation.

Question 3

Conservatism bias

Answer 3

You initially form a rational view but fail to change that view as new information becomes available.

Question 4

Hindsight bias

Answer 4

You have a selective memory of the past and have a tendency to remember your correct views and forget your errors.

Question 5

Confirmation bias

Answer 5

You look for ways to justify your current beliefs.

Question 6

Representativeness

Answer 6

When considering your choices in a decision, you tend to recall a past experience similar to the present decision-making situation, and assume one is like the other.

Question 7

Mental accounting

Answer 7

You tend to place money into separate mental “accounts” based on the purpose of these accounts.

Question 8

Cognitive dissonance

Answer 8

You have conflicting attitudes, beliefs, or behaviors that cause a feeling of mental discomfort. This leads to changing some of your attitudes, beliefs, or behaviors to reduce your discomfort and feel more balanced.

Question 9

Self-attribution bias

Answer 9

You take credit for your successes and either blame others or external influences for your failures.

Question 10

Anchoring and adjustment

Answer 10

You make irrational decisions based on information that should have no influence on the decisions at hand.

Question 11

Outcome bias

Answer 11

You tend to take a course of action based on the outcomes of prior events, ignoring current conditions.

Question 12

Framing bias

Answer 12

You process and respond to information based on the manner in which it is presented.

Question 13

Recency bias

Answer 13

You give recent information more importance because you remember it most distinctly.

Question 14

Loss aversion

Answer 14

You fear losses much more than you value gains, and you prefer avoiding losses to acquiring the same amount in gains.

Question 15

Overconfidence

Answer 15

You believe that you control random events merely by acquiring more knowledge and consider your abilities to be much better than they are.

Question 16

Self-control bias

Answer 16

You lack self-discipline and favor immediate gratification over long-term goals.

Question 17

Status quo bias

Answer 17

You are comfortable with an existing situation, which leads to an unwillingness to make changes, even though the changes are beneficial.

Question 18

Endowment bias

Answer 18

You think an asset you own is worth more than it is because it is yours.

Question 19

Regret aversion bias

Answer 19

You do nothing out of excess fear that your decisions or actions could be wrong.

Question 20

Affinity bias

Answer 20

You make decisions based on how you believe the outcomes will represent your interests and values.