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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. 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
initial investing
industry risk
mutual funds
2. The amount a corporation pays at a fixed amount when repaying a bond
systematic investing
financial advisers
variable expenses
interest
3. A spending plan for managing money during a given period of time.
budget
portfolio
variable expenses
state income tax
4. Bold and high-risk investments
bankruptcy
tax deferred
satellite decisions
speculative investments
5. Newspapers list of securities
real estate
origination fee
financial pages
variable expenses
6. Merrill Lynch & Fidelity Investments & American Express
interest-rate risk
well-know full-service brokers
satellite decisions
short term goal
7. The entire amount of money you owe to lenders
debt
risk management
annual fee
spyware
8. Wall Street Journal and Barron's
delayed gratification
grace period
systematic investing
well-known financial newspapers
9. Uncontrollable and unpredictable events that cause an investment to lose value
risk taker
non-market risk
Series EE Savings Bond
initial investing
10. Actions that the government might take that would reduce the value of an investment
deductible
corporate bonds
political risk
origination fee
11. A for-profit company that is owned by its stockholders and provides savings and checking accounts and other financial services to its customers.
origination fee
market risk
strategic investing
bank
12. The credit union term for a savings account.
annual fee
credit union
tax deferred
share account
13. Investors who take to take chances
share draft account
capital loss
risk taker
US Treasury Bills
14. Discount bonds; a bond purchased for less than the maturity value; example you buy a $50 bond for $25
Personal Identification Number - PIN
Series EE Savings Bond
delayed gratification
annual report
15. Fee on credit card for making charges above your credit limit.
savings
social security tax
over-the-limit fee
variable expenses
16. A chosen pursuit - profession - or occupation
principal
satellite decisions
career
collectibles
17. The practice of investing a fixed amount into the same investment at regular intervals - regardless of what the stock market is doing.
interest
coverage limit
stock market
dollar cost average
18. A form of bankruptcy that allows you to repay many of your debts over a period of time - usually no more than five years.
well-know financial magazines
chapter 13
pay yourself first - P.Y.F.
municipal bonds
19. Companies that provide extensive financial data to clients
Series EE Savings Bond
investor services
speculative investments
company risk
20. A detailed record of your personal credit and financial transactions.
futures
career
capital gain
credit report
21. An investment security that is actually a diversified portfolio of equities - bonds or other securities. Investors purchase shares and can sell them at any time.
mutual fund
bankruptcy
strategic investing
options
22. The practice of investing a fixed amount into the same investment at regular intervals - regardless of what the stock market is doing.
industry risk
dollar cost average
capital gain
share draft account
23. The idea that money today is worth more than the same amount of money in the future due to its potential earning capacity.
time value of money
financial pages
wants
bank
24. Money used for short-term needs like emergencies; advisers recommend three to six months' net pay for set aside for this
career
annuities
put-and-take account
credit
25. Summary of a corporation's financial condition
compounding interest rate
credit
annual report
financial advisers
26. Merrill Lynch & Fidelity Investments & American Express
well-know full-service brokers
Securities and Exchange Commission
well-known discount brokers
share draft account
27. The difference between a lower selling price and a higher purchase price resulting in a financial loss for the seller
capital loss
variable expenses
debit card
risk management
28. The entire amount of money you owe to lenders
US Treasury Bills
debt
speculative investments
diversification
29. US treasury security that matures from a few days to one year
political risk
penny stocks
dollar cost average
US Treasury Bills
30. Expenses that aren't paid every month and can be either fixed or variable.
annual report
universal default
periodic or occasional expenses
coverage limit
31. Expenses that aren't paid every month and can be either fixed or variable.
spending plan
annuities
Series I Savings Bond
periodic or occasional expenses
32. Brokers who provided little or no information to clients
discount brokers
US Treasury Bonds
Rule of 72
risk
33. The use of long-term savings to earn a financial return
Rule of 72
Investing
credit score
tax deferred
34. A government sector that requires all public corporations to make annual reports available to their stockholders
Securities and Exchange Commission
principal
state income tax
wants
35. A bank account against which the depositor can draw checks payable on demand.
interest
risk
checking account
bank
36. The place where stocks are bought and sold.
diversification
stock market
dollar cost average
credit score
37. Brokers who provide clients with analysis and opinions
discount brokers
checking account
full-service broker
well-know full-service brokers
38. Conservative investing; used when you have 'excess' savings
initial investing
rate of return
credit limit
time value of money
39. The amount a corporation pays at a fixed amount when repaying a bond
variable expenses
interest
short term goal
real estate
40. A goal to be achieved within the next three months.
mutual fund
short term goal
investing risk
coverage limit
41. A for-profit company that is owned by its stockholders and provides savings and checking accounts and other financial services to its customers.
credit report
bank
discount brokers
capital loss
42. The increase or decrease in the original purchase price of an investment over a period of time.
futures
rate of return
initial investing
share draft account
43. A term that describes investments on which earnings are not taxed until retirement
financial pages
values
tax deferred
savings
44. Debt obligations of state or local governments
municipal bonds
spyware
budget
bank
45. A general and progressive increase in prices
stock market
dividend
inflation
APR - Average Percentage Rate
46. The amount a corporation borrowed in a bond situation
Series I Savings Bond
share account
principal
yield
47. Business Weekly & Forbes & Money
well-know financial magazines
stock market
APR - Average Percentage Rate
options
48. A unit of ownership in a corporation
universal default
stocks
state income tax
budget
49. The setting aside of money for future use or other investments
Securities and Exchange Commission
rate of return
origination fee
pay yourself first - P.Y.F.
50. Things that add comfort and pleasure to your life but you can live without if you need to.
wants
collectibles
delayed gratification
risk management