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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 portion of the profits paid to the shareholders of a company.
discount brokers
dividend
real estate
non-market risk
2. Debt obligations of corporations
chapter 7
APR - Average Percentage Rate
phishing
corporate bonds
3. The profit from an investment.
social security tax
yield
put-and-take account
mutual fund
4. Uncontrollable and unpredictable events that cause an investment to lose value
debit card
well-known investor services
bank
non-market risk
5. The probability that injury - damage - or loss will occur.
credit history
bankruptcy
bond
risk
6. Merrill Lynch & Fidelity Investments & American Express
diversification
systematic investing
well-know full-service brokers
systematic investing
7. 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.
spyware
well-known investor services
coverage limit
satellite decisions
8. People trained to give investment advise based on your goals & age & lifestyle & etc
social security tax
financial advisers
state income tax
annual fee
9. Bold and high-risk investments
Series EE Savings Bond
speculative investments
checking account
state income tax
10. The use of long-term savings to earn a financial return
Investing
variable expenses
stock
permanent investment
11. A for-profit company that is owned by its stockholders and provides savings and checking accounts and other financial services to its customers.
chapter 13
periodic or occasional expenses
strategic investing
bank
12. The credit union term for a savings account.
share account
risk averse
risk
checking account
13. A financial institution owned by its members that provides savings and checking accounts and other services to its membership at low fees.
values
options
credit history
credit union
14. A fee charged to a borrower (especially for a mortgage loan) to cover the costs of initiating the loan.
origination fee
bankruptcy
satellite decisions
wants
15. Summary of a corporation's financial condition
Rule of 72
annual report
industry risk
interest-rate risk
16. A financial institution owned by its members that provides savings and checking accounts and other services to its membership at low fees.
share draft account
Series I Savings Bond
credit union
chapter 7
17. A general and progressive increase in prices
budget
mutual fund
interest-rate risk
inflation
18. The chance that an investment's value will decrease
universal default
investing risk
credit score
Securities and Exchange Commission
19. 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.
chapter 13
universal default
credit history
investor services
20. Brokers who provided little or no information to clients
stocks
discount brokers
rate of return
time value of money
21. A certificate documenting the shareholder's ownership in the corporation
pay yourself first - P.Y.F.
Series EE Savings Bond
stock
delayed gratification
22. 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
grace period
financial advisers
Temporary investment
23. A chosen pursuit - profession - or occupation
capital gain
career
credit history
bankruptcy
24. The belief - qualities - or standards that you consider important or desirable.
values
deductible
real estate
industry risk
25. Losses in an investment as a result of the business cycle
stock
market risk
spyware
investing risk
26. 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.
financial pages
well-known discount brokers
savings account
company risk
27. Reducing investment risk by putting money in several different types of investments.
career
portfolio
strategic investing
diversification
28. The chance that inflation will rise faster than the rate of return on an investment
credit union
interest-rate risk
bank
annual report
29. The right & not the obligation & to buy or sell commodities or stocks for a specific price on a specific date
periodic or occasional expenses
inflation
interest-rate risk
options
30. A term that describes investments on which earnings are not taxed until retirement
penny stocks
municipal bonds
savings account
tax deferred
31. An amount of money that is loaned on trust with the expectation that it will be repaid at a later date.
credit
US Treasury Notes
tax deferred
well-known discount brokers
32. The amount of money someone is willing to loan you.
discount brokers
grace period
principal
US Treasury Bonds
33. 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.
yield
APR - Average Percentage Rate
debit card
risk
34. Regular and planned investments
systematic investing
permanent investment
compounding interest rate
credit limit
35. 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
share account
origination fee
Temporary investment
36. A fee charged to a borrower (especially for a mortgage loan) to cover the costs of initiating the loan.
origination fee
initial investing
Series I Savings Bond
capital gain
37. A unit of ownership in a corporation
penny stocks
well-know financial magazines
stocks
bond
38. The amount a corporation pays at a fixed amount when repaying a bond
portfolio
interest
non-market risk
state income tax
39. Charles Schwab & TD Ameritrade & E*TRADE
well-known discount brokers
debt
bond
compounding interest rate
40. Things that add comfort and pleasure to your life but you can live without if you need to.
wants
delayed gratification
ATM - Automatic Teller Machine
risk management
41. The date on which the borrowed money must be repaid
savings account
financial pages
Investing
maturity date
42. US treasury security that matures from a few days to one year
deductible
penny stocks
US Treasury Bills
phishing
43. Things that add comfort and pleasure to your life but you can live without if you need to.
wants
opportunity cost
Securities and Exchange Commission
spyware
44. People trained to give investment advise based on your goals & age & lifestyle & etc
financial advisers
bond
wants
Investing
45. Investing with a series of regular payments; usually associated with life insurance companies
real estate
annuities
rate of return
Series I Savings Bond
46. US treasury security that matures in 2 & 5 & or 10 years
risk management
US Treasury Notes
Securities and Exchange Commission
US Treasury Bonds
47. The willingness to give up something you want now in return for something better in the future.
delayed gratification
savings account
investing risk
capital gain
48. A government sector that requires all public corporations to make annual reports available to their stockholders
well-know financial magazines
stock market
checking account
Securities and Exchange Commission
49. US treasury security that matures from a few days to one year
real estate
diversification
US Treasury Bills
credit report
50. 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.
short term goal
discount brokers
well-known investor services
social security tax