Bank, Capital Market, Retirement

How can confirmation bias affect financial decision-making?

• It encourages comparing all options equally

• It leads to disregarding new evidence contradicting existing beliefs

• It promotes impulse saving

• It boosts risk management

• It eliminates emotional spending

A consumer continues investing in a failing stock because they’ve already spent so much. What bias is this?

• Anchoring bias

• Loss aversion

• Sunk cost fallacy

• Present bias

• Diversification bias

Why is present bias harmful in long-term financial planning?

• It increases savings

• It encourages delaying gratification

• It causes people to prioritize short-term rewards over future goals

• It supports pension contributions

• It builds retirement wealth

If a consumer avoids all investment options due to fear of loss, what are they experiencing?

• Diversification

• Opportunity cost

• Loss aversion

• Rational analysis

• Behavioral equilibrium

What is a key sign of a phishing scam?

• Personalized official address

• Professional grammar

• Urgent request for personal information via email

• Email from your own account

• Encrypted document attachments

A consumer receives a call demanding payment via gift card. What should they do?

• Pay to avoid legal trouble

• Ask for another method

• Report the incident as a fraud

• Transfer the money quickly

• Verify the card balance

Why is it important to review financial statements regularly?

• To track investment growth

• To close unused accounts

• To detect unauthorized transactions early

• To apply for more loans

• To avoid budgeting

How can multifactor authentication help prevent financial fraud?

• It saves login time

• It eliminates passwords

• It requires multiple verifications for access

• It blocks all transactions

• It reduces app speed

What role does a central bank play in the financial system?

• Manages individual savings

• Sells corporate stocks

• Regulates monetary policy and financial stability

• Funds consumer loans

• Sets income tax rates

How do capital markets support economic growth?

• By restricting small investors

• By encouraging speculation

• By enabling efficient allocation of capital

• By reducing government spending

• By centralizing currency use