Ch 2

Question 1

Sign 6

Answer 1

1 word
2 object
3 gesture
4 tone 
5 quality
6 image

Question 2

Making a decision based on whatever info exists in your memory bank best describes….

Answer 2

Availability heuristic

Question 3

What are the 3 general schools of thought counseling?

Answer 3

1 Developmental

2 Humanistic

3 Cognitive Behavioral

Question 4

Identify the school of thought best represented in the statement.

Has its origin in and was influenced by Freudian psychoanalytic theory

Answer 4

Developmental school of thought

Question 5

Identify the 4 basic premises of traditional finance

Answer 5

1 investors are rational
2 markets are efficient
3 mean variance portfolio theory governs
4 returns are determined by risk

Question 6

Behavioral finance is premised on 4 basic premises

Answer 6

1 investors are normal
2 markets are inefficient
3 behavioral portfolio theory governs
4 risk alone doesn’t determine returns

Question 7

Closed question

Answer 7

Answering with short response

Question 8

Overconfidence bias

Answer 8

Usually concerns an investor that listens mostly to himself

Question 9

The cognitive bias herding is described as…

Answer 9

Individuals that mimic actions or decisions of a larger group even though the individual may not have necessarily made the same choice

Question 10

Behavioral finance

Answer 10

Supplements traditional finance with human behavior and psychology

Question 11

Markets are inefficient is not a principle of…

Answer 11

Modern Portfolio Theory

Question 12

Identify the school of thought best represented in the statement.

Humans are subject to the same learning principles that were established in animal research

Answer 12

Cognitive behavioral school of thought

Question 13

A rational investor as described in traditional finance is not affected by…

Answer 13

Bias or emotion

Question 14

Confirmation bias

Answer 14

Belief or opinion is hard to shake in the future

Question 15

The developmental paradigm believes that all humans…

Answer 15

Develop and progress in a predictable sequence

Question 16

Availability heuristic

Answer 16

Decision maker relies on knowledge that is readily available in his memory

Question 17

Identify the school of thought best represented in the statement.

Defines mental health as having congruent and aligned thoughts, feelings and behaviors…

Answer 17

Humanistic School of Thought

Question 18

Prospect theory

Answer 18

People value gains and losses differently and base decisions on perceived gains rather than loss

Question 19

Open question

Answer 19

One that will result in person answering with lengthy response

Question 20

Human communication

Answer 20

System of signs used in communication process

Question 21

Traditional Finance

Answer 21

Modern Portfolio Theory

Question 22

Is it true that is a statement that is a…

Answer 22

Closed question

Question 23

Advisers should only use open questions during client meetings is…

Answer 23

A false statement

Question 24

Active listening

Answer 24

Involves response from listener

Question 25

Similarity heuristic

Answer 25

Decision made when similar situation occurs

Question 26

Identify the school of thought best represented in the statement

The counselor must identify behavioral excesses and inadequacies and try to manipulate these forces to change the client’s behavior and thought process

Answer 26

Cognitive behavioral school of thought

Question 27

Cognitive Behavioral Paradigm

Answer 27

Humans are subject to same learning principles as animal research

Question 28

Humanistic Paradigm

Answer 28

For a client to grow, the relationship requires a transparent genuine counselor

Question 29

Passive listening

Answer 29

Communication rests entirely on other person

Question 30

Affect heuristic

Answer 30

Deals with judging something

Question 31

The humanistic paradigm requires a…

Answer 31

Transparent and genuine counselor with a philosophical stance that humankind is basically good

And people have the inherent capability of self direction and growth under the right set of circumstances

Question 32

Gamblers fallacy

Answer 32

The realm of probabilities can lead to faulty predictions