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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. The process of dealing with the chance of a potential personal or financial loss.
risk management
well-know financial magazines
options
yield
2. Contacts to buy and sell commodities or stocks for a specific price on a specific date
full-service broker
futures
inflation
US Treasury Bonds
3. Business Weekly & Forbes & Money
over-the-limit fee
credit limit
well-know financial magazines
risk management
4. A payroll deduction collected by employers by law and sent to the state government to support state services.
chapter 7
state income tax
company risk
mutual fund
5. A term that describes investments on which earnings are not taxed until retirement
tax deferred
US Treasury Bills
penny stocks
well-know full-service brokers
6. Movement of money you receive and the money you spend
savings account
universal default
put-and-take account
cash flow
7. The willingness to give up something you want now in return for something better in the future.
delayed gratification
well-known discount brokers
debt
deductible
8. Companies that provide extensive financial data to clients
investor services
well-known financial newspapers
industry risk
capital gain
9. Regular and planned investments
credit report
systematic investing
US Treasury Notes
industry risk
10. An amount of money that is loaned on trust with the expectation that it will be repaid at a later date.
maturity date
permanent investment
credit
risk averse
11. US treasury security that matures from a few days to one year
well-known financial newspapers
US Treasury Bills
share draft account
Securities and Exchange Commission
12. Coins & art & memorabilia or other items that are popular from time to time
values
Personal Identification Number - PIN
Personal Identification Number - PIN
collectibles
13. The difference between a lower selling price and a higher purchase price resulting in a financial loss for the seller
capital loss
maturity date
annual report
full-service broker
14. A legal process to get out of debt when you can no longer make all your required payments.
Personal Identification Number - PIN
investor services
bankruptcy
US Treasury Bonds
15. 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.
Securities and Exchange Commission
corporate bonds
social security tax
US Treasury Bills
16. Debt obligations of state or local governments
chapter 7
municipal bonds
credit
bankruptcy
17. The amount a corporation pays at a fixed amount when repaying a bond
interest
chapter 7
speculative investments
Rule of 72
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.
political risk
US Treasury Bonds
chapter 13
Rule of 72
19. The value of What is given up when you choose one option over another.
opportunity cost
mutual funds
annual report
tax deferred
20. Losses in an investment as a result of the business cycle
stocks
market risk
over-the-limit fee
tax deferred
21. A government sector that requires all public corporations to make annual reports available to their stockholders
Securities and Exchange Commission
spending plan
risk
credit limit
22. The unique passcode number you use to get access to your savings and/or checking account
credit union
yield
debit card
Personal Identification Number - PIN
23. Contacts to buy and sell commodities or stocks for a specific price on a specific date
futures
universal default
deductible
over-the-limit fee
24. A bank account against which the depositor can draw checks payable on demand.
opportunity cost
checking account
stocks
well-know full-service brokers
25. 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.
inflation
APR - Average Percentage Rate
opportunity cost
credit history
26. The maximum amount an insurance company will pay if you file a claim.
coverage limit
non-market risk
risk management
discount brokers
27. The amount a corporation pays at a fixed amount when repaying a bond
interest
principal
political risk
capital loss
28. Money used for short-term needs like emergencies; advisers recommend three to six months' net pay for set aside for this
Investing
put-and-take account
deductible
diversification
29. Discount bonds; a bond purchased for less than the maturity value; example you buy a $50 bond for $25
checking account
Series EE Savings Bond
spending plan
risk
30. A formal contract to repay borrowed money with interest at fixed intervals
debt
financial advisers
bond
social security tax
31. A goal to be achieved within the next three months.
political risk
short term goal
savings
values
32. The value of What is given up when you choose one option over another.
values
pay yourself first - P.Y.F.
opportunity cost
political risk
33. Conservative investing; used when you have 'excess' savings
share draft account
stock
initial investing
opportunity cost
34. Investing with a series of regular payments; usually associated with life insurance companies
well-know full-service brokers
well-know full-service brokers
annuities
credit report
35. Standard and Poor's and Moody's
well-known investor services
risk taker
portfolio
credit report
36. Discount bonds; a bond purchased for less than the maturity value; example you buy a $50 bond for $25
credit score
Series EE Savings Bond
pay yourself first - P.Y.F.
non-market risk
37. A fee charged to a borrower (especially for a mortgage loan) to cover the costs of initiating the loan.
origination fee
company risk
deductible
values
38. On a credit card - the length of time you have before you start accumulating interest on an unpaid balance.
chapter 7
variable expenses
principal
grace period
39. The right & not the obligation & to buy or sell commodities or stocks for a specific price on a specific date
well-known discount brokers
options
risk
credit history
40. The practice of investing a fixed amount into the same investment at regular intervals - regardless of what the stock market is doing.
interest-rate risk
rate of return
market risk
dollar cost average
41. US treasury security that matures in 2 & 5 & or 10 years
credit report
yield
US Treasury Notes
risk management
42. The setting aside of money for future use or other investments
well-known investor services
cash flow
bank
pay yourself first - P.Y.F.
43. An electronic machine that bank customers and credit union members can use to withdraw cash and make other financial transactions.
ATM - Automatic Teller Machine
investor services
annuities
Securities and Exchange Commission
44. 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.'
penny stocks
inflation
risk management
debit card
45. Wall Street Journal and Barron's
Securities and Exchange Commission
debt
futures
well-known financial newspapers
46. The credit union term for a savings account.
inflation
over-the-limit fee
permanent investment
share account
47. The credit union term for a checking account.
periodic or occasional expenses
share draft account
principal
cash flow
48. Losses in an investment as a result of the business cycle
bank
over-the-limit fee
market risk
financial pages
49. Fee on credit card for making charges above your credit limit.
grace period
bank
interest-rate risk
over-the-limit fee
50. The right & not the obligation & to buy or sell commodities or stocks for a specific price on a specific date
APR - Average Percentage Rate
social security tax
options
debt