NGPF: Behavioral Economics, Banking, and Investing

An actively managed mutual fund…

*Identify two fees that banks typically charge on a checking account and how you can avoid them.

FOMO is a cognitive bias in which individuals fear losing money more than they desire the potential gains

You have overdraft protection. You overdraw on three separate purchases. What will happen due to these transactions?

All of the following statements about bank accounts are true EXCEPT…

Three of these statements best describe a checking account. Which statement best describes a savings account?

Which represents possible goals, ordered from short-term to long-term? Save for…

 How is a bond different from a stock?

Which account type would be best for not needing access to the money for many years & earns the highest interest rates?

The best way to make money in the stock market is to be an active trader. Don't waste too much time in the market.

Which of the following is an effective strategy for personal saving?

Credit unions and banks are both insured by the FDIC for up to $250,000 per account

Which of the statements BEST describes the relationship between risk and return when considering an investment?

Experts recommend that you accumulate enough to cover 3 to 6 _____ of expenses in your emergency fund.

You bout 10 shares at $45/ea. 2 months later you sold them all for $80/ea. What was your profit or loss?

*Provide one reason that it is important to start putting money away for retirement as early as possible.

Why is diversification a recommended investment strategy?

 Which of the following accurately describes a difference between an individual bond compared to a bond fund?

*Explain three key differences between index funds and mutual funds.

*Explain why it is important to start saving for retirement when you’re young, even though retirement is decades away.

 Why are Index Funds such a popular investing option?

You order a big meal. Even though you’re full, you keep eating because it was expensive. This is an example of…

It is easy to recognize when cognitive biases are influencing our own decisions

Su's month pay is $4k, and her month expenses are $2k. If she saves 10%... how long will it be to build a 6 month fund?

How often do customers typically receive a bank statement for their checking account?

Which of the following transactions will REDUCE your checking account balance immediately?

You use your debit card to pay for your groceries. Where does the money for this purchase come from?

Which represents the BEST time to start saving for your retirement?

The majority of Americans have an adequate emergency fund.

When calculating the percentages for each budget category, you should use your pre-tax income

Why is it important for you to understand your risk tolerance before you start investing?

ETF prices can change throughout the day as they are exchanged on the market

Compound interest allows you to earn interest on the amount you have saved and the interest you've already earned

*Jeff just started his first job, and knows he should start saving for retirement. Give Jeff asset allocation advice.

 How does investing in the stock market differ from putting money in a savings account at a bank?

Joy's bank account balance has dropped below $100 after a series of $20 ATM withdrawals. What should she do?

If you follow the 50-30-20 rule, you'll be putting 50% of your monthly income toward _, 30% toward _, and 20% toward _.