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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. Reducing investment risk by putting money in several different types of investments.
values
cash flow
financial advisers
diversification
2. The right & not the obligation & to buy or sell commodities or stocks for a specific price on a specific date
penny stocks
Temporary investment
credit limit
options
3. Smaller decisions that can result from a major decision.
strategic investing
diversification
investing risk
satellite decisions
4. Bonds designed for investors wanting to protect again inflation losses
Series I Savings Bond
bond
mutual funds
universal default
5. An amount of money that is loaned on trust with the expectation that it will be repaid at a later date.
Temporary investment
risk taker
credit
investing risk
6. Low-priced stocks of small companies that have no track record
savings
investing risk
penny stocks
risk
7. 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.
well-known financial newspapers
savings
social security tax
diversification
8. Movement of money you receive and the money you spend
corporate bonds
Rule of 72
spending plan
cash flow
9. 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.
portfolio
social security tax
yield
savings account
10. A financial institution owned by its members that provides savings and checking accounts and other services to its membership at low fees.
credit union
budget
annual report
annual report
11. People trained to give investment advise based on your goals & age & lifestyle & etc
satellite decisions
full-service broker
strategic investing
financial advisers
12. The unique passcode number you use to get access to your savings and/or checking account
Personal Identification Number - PIN
delayed gratification
diversification
values
13. A summary of a person's borrowing and repayment history.
credit history
delayed gratification
well-known investor services
futures
14. 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.
ATM - Automatic Teller Machine
speculative investments
dividend
APR - Average Percentage Rate
15. An amount of money that is loaned on trust with the expectation that it will be repaid at a later date.
budget
financial pages
Rule of 72
credit
16. The difference between a higher selling price and a lower purchase price - resulting in a financial gain for the seller
bankruptcy
collectibles
capital gain
time value of money
17. Smaller decisions that can result from a major decision.
market risk
time value of money
satellite decisions
company risk
18. A term that describes investments on which earnings are not taxed until retirement
portfolio
career
tax deferred
state income tax
19. Expenses that aren't paid every month and can be either fixed or variable.
periodic or occasional expenses
debt
pay yourself first - P.Y.F.
variable expenses
20. Investment choices that will be re-evaluated within a year or less
stock market
Temporary investment
budget
well-known investor services
21. The maximum amount an insurance company will pay if you file a claim.
savings account
coverage limit
market risk
US Treasury Bills
22. Maximum amount of credit a lender will extend to a customer.
credit limit
well-known investor services
risk averse
non-market risk
23. A general and progressive increase in prices
inflation
diversification
credit union
Securities and Exchange Commission
24. Collection of investments
bond
portfolio
Personal Identification Number - PIN
savings account
25. Discount bonds; a bond purchased for less than the maturity value; example you buy a $50 bond for $25
diversification
risk averse
stock market
Series EE Savings Bond
26. An electronic machine that bank customers and credit union members can use to withdraw cash and make other financial transactions.
collectibles
checking account
ATM - Automatic Teller Machine
municipal bonds
27. Is a numerical rating - based on credit report information that represents a person's level of creditworthiness
credit score
universal default
strategic investing
coverage limit
28. An amount that credit card companies can charge for the use of a credit card.
annual fee
discount brokers
collectibles
stock market
29. Pooling of money from many investors to buy a large & diverse selection of securities
mutual funds
corporate bonds
dividend
US Treasury Notes
30. The portion of the profits paid to the shareholders of a company.
dividend
credit limit
principal
capital loss
31. Actions that the government might take that would reduce the value of an investment
political risk
dollar cost average
US Treasury Notes
credit report
32. US treasury security that matures in 2 & 5 & or 10 years
diversification
US Treasury Notes
mutual fund
Rule of 72
33. The amount a corporation borrowed in a bond situation
principal
full-service broker
credit history
chapter 7
34. A unit of ownership in a corporation
opportunity cost
compounding interest rate
principal
stocks
35. 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.
grace period
mutual fund
pay yourself first - P.Y.F.
savings account
36. Regular and planned investments
yield
speculative investments
portfolio
systematic investing
37. Things that add comfort and pleasure to your life but you can live without if you need to.
annual report
chapter 7
wants
pay yourself first - P.Y.F.
38. A form of bankruptcy that allows you to repay many of your debts over a period of time - usually no more than five years.
share account
portfolio
chapter 13
Rule of 72
39. The amount of money someone is willing to loan you.
risk
annuities
company risk
principal
40. Brokers who provide clients with analysis and opinions
grace period
full-service broker
variable expenses
pay yourself first - P.Y.F.
41. A technique used for estimating the number of years required to double your money at a given rate
Rule of 72
corporate bonds
financial advisers
risk management
42. Debt obligations of state or local governments
principal
municipal bonds
values
tax deferred
43. Summary of a corporation's financial condition
options
universal default
annual report
Temporary investment
44. The practice of investing a fixed amount into the same investment at regular intervals - regardless of what the stock market is doing.
risk averse
wants
investor services
dollar cost average
45. Low-priced stocks of small companies that have no track record
mutual fund
full-service broker
ATM - Automatic Teller Machine
penny stocks
46. 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.
APR - Average Percentage Rate
Securities and Exchange Commission
coverage limit
diversification
47. A government sector that requires all public corporations to make annual reports available to their stockholders
tax deferred
well-know full-service brokers
risk averse
Securities and Exchange Commission
48. The credit union term for a savings account.
risk
share account
values
career
49. Standard and Poor's and Moody's
dividend
Rule of 72
investing risk
well-known investor services
50. The use of long-term savings to earn a financial return
real estate
market risk
stock
Investing