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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. Is a numerical rating - based on credit report information that represents a person's level of creditworthiness
compounding interest rate
credit score
full-service broker
permanent investment
2. Spreading risk among many types of investments; one way to minimize risk
stock market
credit limit
diversification
permanent investment
3. The amount a corporation pays at a fixed amount when repaying a bond
yield
interest
annuities
chapter 7
4. A technique used for estimating the number of years required to double your money at a given rate
market risk
well-know full-service brokers
Rule of 72
well-known investor services
5. Actions that the government might take that would reduce the value of an investment
permanent investment
yield
credit history
political risk
6. The profit from an investment.
yield
financial pages
Series EE Savings Bond
well-known discount brokers
7. Management of investment alternatives to maximize the growth of your portfolio
chapter 13
strategic investing
share draft account
penny stocks
8. A mathematical method that can be used to show how long it will take to double your money in an investment simply by dividing 72 by the rate of interest.
Rule of 72
origination fee
checking account
political risk
9. Associated with owning stock of only one company
options
share account
company risk
strategic investing
10. A fee charged to a borrower (especially for a mortgage loan) to cover the costs of initiating the loan.
origination fee
maturity date
put-and-take account
political risk
11. A chosen pursuit - profession - or occupation
career
systematic investing
checking account
well-known financial newspapers
12. Bonds designed for investors wanting to protect again inflation losses
capital loss
wants
investing risk
Series I Savings Bond
13. Bold and high-risk investments
credit
wants
permanent investment
speculative investments
14. Summary of a corporation's financial condition
compounding interest rate
time value of money
annual report
company risk
15. The willingness to give up something you want now in return for something better in the future.
systematic investing
satellite decisions
rate of return
delayed gratification
16. Brokers who provide clients with analysis and opinions
deductible
permanent investment
full-service broker
interest
17. Newspapers list of securities
annuities
financial pages
credit score
capital gain
18. A detailed record of your personal credit and financial transactions.
spyware
credit report
annuities
Series I Savings Bond
19. The process of dealing with the chance of a potential personal or financial loss.
cash flow
risk management
principal
values
20. The credit union term for a checking account.
credit limit
maturity date
share draft account
spyware
21. A detailed record of your personal credit and financial transactions.
credit report
bankruptcy
bank
Series I Savings Bond
22. Contacts to buy and sell commodities or stocks for a specific price on a specific date
Temporary investment
options
futures
state income tax
23. The credit union term for a savings account.
share account
checking account
periodic or occasional expenses
savings
24. The difference between a lower selling price and a higher purchase price resulting in a financial loss for the seller
political risk
variable expenses
spending plan
capital loss
25. Property consisting of houses and land
dollar cost average
real estate
well-known financial newspapers
credit union
26. Debt obligations of corporations
risk averse
corporate bonds
diversification
financial pages
27. Investors who are afraid to make investments
risk averse
permanent investment
Personal Identification Number - PIN
real estate
28. The right & not the obligation & to buy or sell commodities or stocks for a specific price on a specific date
corporate bonds
spending plan
options
annual fee
29. A form of bankruptcy that allows you to repay many of your debts over a period of time - usually no more than five years.
pay yourself first - P.Y.F.
chapter 13
collectibles
time value of money
30. An account you have at a financial institution that helps you accumulate and save money and earn a small amount of interest at the same time.
state income tax
well-known discount brokers
Personal Identification Number - PIN
savings account
31. Uncontrollable and unpredictable events that cause an investment to lose value
full-service broker
Personal Identification Number - PIN
non-market risk
market risk
32. The date on which the borrowed money must be repaid
ATM - Automatic Teller Machine
credit union
collectibles
maturity date
33. Debt obligations of state or local governments
risk averse
yield
share draft account
municipal bonds
34. The entire amount of money you owe to lenders
credit score
bank
credit report
debt
35. Investment choices that will be held for long periods
grace period
permanent investment
deductible
annuities
36. The amount of money someone is willing to loan you.
options
time value of money
US Treasury Notes
principal
37. Investing with a series of regular payments; usually associated with life insurance companies
annual fee
annuities
variable expenses
career
38. A goal to be achieved within the next three months.
municipal bonds
diversification
US Treasury Notes
short term goal
39. An amount that credit card companies can charge for the use of a credit card.
social security tax
strategic investing
principal
annual fee
40. 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.
ATM - Automatic Teller Machine
chapter 13
mutual funds
mutual fund
41. The portion of the profits paid to the shareholders of a company.
discount brokers
wants
portfolio
dividend
42. A certificate documenting the shareholder's ownership in the corporation
principal
principal
annual report
stock
43. 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.
tax deferred
Personal Identification Number - PIN
universal default
permanent investment
44. A term that describes investments on which earnings are not taxed until retirement
mutual funds
financial advisers
tax deferred
phishing
45. A formal contract to repay borrowed money with interest at fixed intervals
spending plan
risk
chapter 7
bond
46. Things that add comfort and pleasure to your life but you can live without if you need to.
wants
bond
over-the-limit fee
principal
47. A summary of a person's borrowing and repayment history.
investor services
variable expenses
real estate
credit history
48. Another term for budget
company risk
spending plan
non-market risk
maturity date
49. Collection of investments
portfolio
career
grace period
industry risk
50. The difference between a lower selling price and a higher purchase price resulting in a financial loss for the seller
financial advisers
wants
interest-rate risk
capital loss