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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 technique used for estimating the number of years required to double your money at a given rate
credit union
Rule of 72
grace period
tax deferred
2. A fee charged to a borrower (especially for a mortgage loan) to cover the costs of initiating the loan.
market risk
origination fee
speculative investments
APR - Average Percentage Rate
3. A payroll deduction collected by employers by law and sent to the federal government to provide a small income and other services to the elderly - disabled Americans - and orphaned minors.
dividend
social security tax
options
discount brokers
4. An amount of money that is loaned on trust with the expectation that it will be repaid at a later date.
bank
Rule of 72
credit
capital gain
5. The date on which the borrowed money must be repaid
annuities
risk management
diversification
maturity date
6. An amount that credit card companies can charge for the use of a credit card.
annual fee
investing risk
risk taker
spyware
7. A financial institution owned by its members that provides savings and checking accounts and other services to its membership at low fees.
well-known financial newspapers
corporate bonds
credit union
universal default
8. An electronic machine that bank customers and credit union members can use to withdraw cash and make other financial transactions.
ATM - Automatic Teller Machine
well-know full-service brokers
interest-rate risk
speculative investments
9. An electronic machine that bank customers and credit union members can use to withdraw cash and make other financial transactions.
industry risk
ATM - Automatic Teller Machine
well-known investor services
inflation
10. Another term for budget
spending plan
credit limit
time value of money
bankruptcy
11. People trained to give investment advise based on your goals & age & lifestyle & etc
company risk
financial advisers
initial investing
career
12. Actions that the government might take that would reduce the value of an investment
political risk
short term goal
budget
credit report
13. The unique passcode number you use to get access to your savings and/or checking account
mutual fund
tax deferred
spyware
Personal Identification Number - PIN
14. The use of long-term savings to earn a financial return
well-known financial newspapers
Investing
penny stocks
futures
15. A term that describes investments on which earnings are not taxed until retirement
maturity date
real estate
tax deferred
well-know full-service brokers
16. Business Weekly & Forbes & Money
well-know financial magazines
US Treasury Bonds
chapter 13
collectibles
17. Losses in an investment as a result of the business cycle
tax deferred
market risk
periodic or occasional expenses
wants
18. The amount of money someone is willing to loan you.
municipal bonds
principal
mutual funds
opportunity cost
19. The chance that inflation will rise faster than the rate of return on an investment
interest-rate risk
risk
bank
financial pages
20. A summary of a person's borrowing and repayment history.
delayed gratification
credit history
mutual fund
well-known investor services
21. The practice of investing a fixed amount into the same investment at regular intervals - regardless of what the stock market is doing.
dollar cost average
capital loss
capital gain
penny stocks
22. Bonds designed for investors wanting to protect again inflation losses
penny stocks
Series I Savings Bond
state income tax
financial pages
23. Spreading risk among many types of investments; one way to minimize risk
financial pages
Investing
diversification
risk taker
24. The belief - qualities - or standards that you consider important or desirable.
real estate
stocks
values
savings account
25. Smaller decisions that can result from a major decision.
satellite decisions
permanent investment
well-know financial magazines
mutual funds
26. The credit union term for a checking account.
share draft account
Series I Savings Bond
non-market risk
coverage limit
27. The difference between a lower selling price and a higher purchase price resulting in a financial loss for the seller
capital loss
bond
credit
risk averse
28. Investment choices that will be re-evaluated within a year or less
delayed gratification
real estate
Temporary investment
discount brokers
29. Management of investment alternatives to maximize the growth of your portfolio
strategic investing
spyware
universal default
spending plan
30. The value of What is given up when you choose one option over another.
opportunity cost
spyware
Series EE Savings Bond
capital gain
31. A government sector that requires all public corporations to make annual reports available to their stockholders
permanent investment
Securities and Exchange Commission
Series EE Savings Bond
diversification
32. The credit union term for a checking account.
share draft account
dividend
spyware
credit report
33. Investors who take to take chances
risk taker
futures
universal default
credit union
34. Newspapers list of securities
annuities
collectibles
financial pages
well-known discount brokers
35. Standard and Poor's and Moody's
debit card
company risk
well-known investor services
penny stocks
36. 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.
well-know full-service brokers
chapter 13
well-known financial newspapers
universal default
37. The increase or decrease in the original purchase price of an investment over a period of time.
well-know financial magazines
rate of return
stock
inflation
38. Investment choices that will be held for long periods
municipal bonds
phishing
permanent investment
credit report
39. Regular and planned investments
credit history
portfolio
systematic investing
permanent investment
40. A financial institution owned by its members that provides savings and checking accounts and other services to its membership at low fees.
credit union
interest
share account
credit
41. Uncontrollable and unpredictable events that cause an investment to lose value
non-market risk
opportunity cost
well-known discount brokers
interest-rate risk
42. A unit of ownership in a corporation
stocks
values
strategic investing
interest-rate risk
43. Charles Schwab & TD Ameritrade & E*TRADE
well-known discount brokers
spyware
dividend
discount brokers
44. A bad side effect of free downloads that may be used to send you pop-up ads - redirect your computer to unwanted Web sites - monitor your Internet surfing - or record your keystrokes in an effort to steal your identity.
bank
penny stocks
spyware
social security tax
45. 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.'
chapter 13
Series I Savings Bond
Temporary investment
debit card
46. The willingness to give up something you want now in return for something better in the future.
credit score
debt
mutual funds
delayed gratification
47. The maximum amount an insurance company will pay if you file a claim.
coverage limit
stock market
diversification
put-and-take account
48. Management of investment alternatives to maximize the growth of your portfolio
well-known investor services
strategic investing
Series EE Savings Bond
interest-rate risk
49. The process of dealing with the chance of a potential personal or financial loss.
risk management
credit score
financial pages
phishing
50. US treasury security that matures from a few days to one year
US Treasury Bills
dollar cost average
opportunity cost
well-known investor services