Financial Psychology Flashcards
A leading response will often provoke a ________.
More detailed answer.
How do individuals with kinesthetic learning styles prefer to have information presented to them?
In bullet point format.
What is it called when a client that wishes to include personal, spiritual, and emotional goals into their financial plan?
Values driven planning.
Buying a security because it dropped and “must” go back up in value reflects what type of bias?
Anchoring.
Someone who overspends, has high levels of credit card debt, and could be classified as a workaholic, would follow which money-script?
Money worship.
Overinvestment in companies a client “knows” is what bias?
Familiarity.
Overconfidence leads to ________?
Overtrading.
“it’s fallen so much that it must go back up in value” reflects what type of bias?
Anchoring.
What approach assumes a client is rational and will change behavior if given counseling?
The economic resource approach.
In behavioral financial, cognitive dissonance is a result of ________?
Over confidence.
A planning that views themselves as a consultant takes what type of approach?
The strategic management approach.
What are the 4 categories or general communication?
- *Mas**s.
- *Intrape**rsonal.
- *Interpe**rsonal.
- *Gro**up.
Which approach uses the SWOT analysis?
Strategic management approach.
What are intrapersonal skills?
- *A** form of self-communication.
- *Th**is is the dialog a client has with themselves.
What’s it called when an asset feels “special” to a client, and they have sentimental feelings about the holding?
Endowment bias.
When a client is unable to objectively review and analyze new information?
Anchoring.
When a client disregards accurate, but unsupportive information, this is a sign of ________?
Confirmation bias.
Attitudes, believes, and values all fall in line with which approach?
The cognitive behavior approach.
In prospect theory, investors are more concerned with ________.
Avoiding losses than achieving gains.
A client that places different values on comparable entities based on different situations is exhibiting ________.
Mental accounting.
A client who tries not to think about money and believe they do not deserve money, falls into which money-script?
Money avoidance.
A client that purchases items in an effort to create happiness falls into which money-script?
Money worship.
Which types of learners tend to communicate with facial expressions?
Visual learners.
What is it called when someone will not change their view when they are presented with new information that is contradictory to their views?
Belief preservation.
Someone who believes that rich people get rich by taking advantage of other people, fall into which money-script?
Money avoidance.
Hindsight bias and cognitive dissonance are both a type of _________?
Overconfidence.
Someone who doesn’t look at statements, does not have a budget, and is in financial denial, falls into which money script?
Money avoidance.
