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Test your basic knowledge |
Financial Literacy Basics
Start Test
Study First
Subjects
:
literacy
,
personal-finance
Instructions:
Answer 50 questions in 15 minutes.
If you are not ready to take this test, you can
study here
.
Match each statement with the correct term.
Don't refresh. All questions and answers are randomly picked and ordered every time you load a test.
This is a study tool. The 3 wrong answers for each question are randomly chosen from answers to other questions. So, you might find at times the answers obvious, but you will see it re-enforces your understanding as you take the test each time.
1. Low-priced stocks of small companies that have no track record
penny stocks
stock
capital loss
time value of money
2. Regular and planned investments
risk taker
portfolio
systematic investing
spending plan
3. A card that is used to deduct a purchase amount directly from your checking account instead of drawing on a line of credit; also called 'check card.'
political risk
Securities and Exchange Commission
US Treasury Bonds
debit card
4. Things that add comfort and pleasure to your life but you can live without if you need to.
Securities and Exchange Commission
career
wants
strategic investing
5. The amount a corporation pays at a fixed amount when repaying a bond
rate of return
risk management
interest
well-known financial newspapers
6. Contacts to buy and sell commodities or stocks for a specific price on a specific date
maturity date
credit limit
futures
opportunity cost
7. Collection of investments
portfolio
yield
real estate
debit card
8. The amount a corporation pays at a fixed amount when repaying a bond
well-known investor services
stocks
stock market
interest
9. A term that describes investments on which earnings are not taxed until retirement
risk taker
US Treasury Bonds
tax deferred
savings
10. A financial institution owned by its members that provides savings and checking accounts and other services to its membership at low fees.
values
stock
portfolio
credit union
11. Charles Schwab & TD Ameritrade & E*TRADE
capital gain
universal default
annual fee
well-known discount brokers
12. The total amount of what it costs you to use credit in a given year. It is expressed as a percentage of the amount borrowed.
stocks
market risk
APR - Average Percentage Rate
opportunity cost
13. Associated with owning stock of similar groups of businesses
penny stocks
dividend
industry risk
maturity date
14. On a credit card - the length of time you have before you start accumulating interest on an unpaid balance.
stock
grace period
spending plan
interest-rate risk
15. Losses in an investment as a result of the business cycle
collectibles
savings account
market risk
industry risk
16. An electronic machine that bank customers and credit union members can use to withdraw cash and make other financial transactions.
mutual funds
wants
diversification
ATM - Automatic Teller Machine
17. US treasury security that matures in 2 & 5 & or 10 years
political risk
market risk
market risk
US Treasury Notes
18. The entire amount of money you owe to lenders
debt
over-the-limit fee
values
diversification
19. A formal contract to repay borrowed money with interest at fixed intervals
origination fee
bond
deductible
well-know financial magazines
20. Associated with owning stock of similar groups of businesses
yield
risk averse
credit
industry risk
21. The difference between a lower selling price and a higher purchase price resulting in a financial loss for the seller
investing risk
credit limit
capital loss
over-the-limit fee
22. A general and progressive increase in prices
tax deferred
compounding interest rate
company risk
inflation
23. Spreading risk among many types of investments; one way to minimize risk
diversification
initial investing
well-known financial newspapers
grace period
24. The credit union term for a checking account.
APR - Average Percentage Rate
bank
share draft account
Series I Savings Bond
25. Expenses that aren't paid every month and can be either fixed or variable.
bankruptcy
periodic or occasional expenses
social security tax
speculative investments
26. An amount of money that is loaned on trust with the expectation that it will be repaid at a later date.
state income tax
credit
credit report
credit score
27. Bonds designed for investors wanting to protect again inflation losses
Series I Savings Bond
penny stocks
mutual funds
municipal bonds
28. Newspapers list of securities
financial pages
Personal Identification Number - PIN
chapter 7
annual report
29. A bank account against which the depositor can draw checks payable on demand.
bankruptcy
checking account
coverage limit
company risk
30. A clause included in many credit card company agreements that allows a credit card company to increase your interest rate if you make just one late payment.
universal default
stock
well-known financial newspapers
risk taker
31. The place where stocks are bought and sold.
initial investing
stock market
risk averse
budget
32. Brokers who provided little or no information to clients
stock
over-the-limit fee
discount brokers
values
33. Wall Street Journal and Barron's
well-known financial newspapers
mutual fund
deductible
Rule of 72
34. Bold and high-risk investments
cash flow
speculative investments
US Treasury Bonds
bankruptcy
35. Business Weekly & Forbes & Money
wants
Rule of 72
well-know financial magazines
US Treasury Notes
36. A chosen pursuit - profession - or occupation
Securities and Exchange Commission
career
maturity date
Series I Savings Bond
37. The profit from an investment.
risk taker
yield
career
universal default
38. The portion of the profits paid to the shareholders of a company.
chapter 13
dividend
opportunity cost
credit report
39. The portion of the profits paid to the shareholders of a company.
bank
dividend
periodic or occasional expenses
mutual fund
40. A payroll deduction collected by employers by law and sent to the state government to support state services.
opportunity cost
state income tax
risk
capital gain
41. Charles Schwab & TD Ameritrade & E*TRADE
municipal bonds
opportunity cost
share account
well-known discount brokers
42. Reducing investment risk by putting money in several different types of investments.
municipal bonds
diversification
debt
collectibles
43. Investors who take to take chances
origination fee
risk taker
Investing
investor services
44. Earning interest on interest.
opportunity cost
investing risk
compounding interest rate
checking account
45. A formal contract to repay borrowed money with interest at fixed intervals
portfolio
credit limit
stock
bond
46. The unique passcode number you use to get access to your savings and/or checking account
initial investing
Personal Identification Number - PIN
mutual fund
short term goal
47. Brokers who provided little or no information to clients
risk management
US Treasury Bills
diversification
discount brokers
48. The right & not the obligation & to buy or sell commodities or stocks for a specific price on a specific date
initial investing
options
well-known investor services
risk taker
49. Regular and planned investments
portfolio
diversification
systematic investing
risk averse
50. Wall Street Journal and Barron's
bank
well-known financial newspapers
market risk
state income tax