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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. Coins & art & memorabilia or other items that are popular from time to time
financial advisers
collectibles
values
grace period
2. The amount of a loss you must pay out of your own pocket before the insurance company will step in and pay the rest.
deductible
spending plan
well-known investor services
discount brokers
3. The credit union term for a checking account.
state income tax
tax deferred
share draft account
phishing
4. The entire amount of money you owe to lenders
delayed gratification
social security tax
debt
coverage limit
5. Standard and Poor's and Moody's
well-known financial newspapers
mutual funds
penny stocks
well-known investor services
6. The chance that inflation will rise faster than the rate of return on an investment
permanent investment
APR - Average Percentage Rate
interest-rate risk
credit
7. Newspapers list of securities
penny stocks
financial pages
savings
Rule of 72
8. A form of bankruptcy that allows you to erase most of your debt.
origination fee
coverage limit
chapter 7
principal
9. The place where stocks are bought and sold.
stock market
mutual funds
futures
penny stocks
10. A payroll deduction collected by employers by law and sent to the state government to support state services.
stock market
values
share draft account
state income tax
11. Collection of investments
credit limit
portfolio
dividend
stock
12. Things that add comfort and pleasure to your life but you can live without if you need to.
investor services
interest-rate risk
wants
risk averse
13. Low-priced stocks of small companies that have no track record
Investing
penny stocks
US Treasury Notes
well-known financial newspapers
14. Fee on credit card for making charges above your credit limit.
Rule of 72
financial advisers
over-the-limit fee
portfolio
15. The amount of a loss you must pay out of your own pocket before the insurance company will step in and pay the rest.
opportunity cost
interest-rate risk
deductible
company risk
16. Money used for short-term needs like emergencies; advisers recommend three to six months' net pay for set aside for this
bond
chapter 7
financial advisers
put-and-take account
17. Smaller decisions that can result from a major decision.
dollar cost average
values
APR - Average Percentage Rate
satellite decisions
18. A fee charged to a borrower (especially for a mortgage loan) to cover the costs of initiating the loan.
well-know financial magazines
investing risk
origination fee
budget
19. The setting aside of money for future use or other investments
short term goal
state income tax
stock
pay yourself first - P.Y.F.
20. A term that describes investments on which earnings are not taxed until retirement
wants
investing risk
tax deferred
initial investing
21. A goal to be achieved within the next three months.
bank
short term goal
risk taker
risk management
22. Discount bonds; a bond purchased for less than the maturity value; example you buy a $50 bond for $25
mutual funds
career
Securities and Exchange Commission
Series EE Savings Bond
23. Associated with owning stock of similar groups of businesses
share draft account
speculative investments
industry risk
systematic investing
24. US treasury security that matures from a few days to one year
interest-rate risk
US Treasury Bills
tax deferred
satellite decisions
25. A for-profit company that is owned by its stockholders and provides savings and checking accounts and other financial services to its customers.
checking account
bank
Series EE Savings Bond
company risk
26. A chosen pursuit - profession - or occupation
market risk
career
stock market
principal
27. The value of What is given up when you choose one option over another.
rate of return
Investing
corporate bonds
opportunity cost
28. A chosen pursuit - profession - or occupation
rate of return
industry risk
career
initial investing
29. US treasury security that matures from a few days to one year
diversification
US Treasury Bills
spending plan
non-market risk
30. Reducing investment risk by putting money in several different types of investments.
credit union
permanent investment
wants
diversification
31. Investment choices that will be re-evaluated within a year or less
credit
Temporary investment
bankruptcy
wants
32. A certificate documenting the shareholder's ownership in the corporation
political risk
stock
credit score
share draft account
33. The credit union term for a savings account.
share account
penny stocks
origination fee
chapter 7
34. Bold and high-risk investments
Personal Identification Number - PIN
speculative investments
credit limit
risk taker
35. The chance that an investment's value will decrease
market risk
investing risk
state income tax
principal
36. Smaller decisions that can result from a major decision.
US Treasury Notes
well-know financial magazines
industry risk
satellite decisions
37. Associated with owning stock of only one company
investor services
systematic investing
compounding interest rate
company risk
38. Brokers who provide clients with analysis and opinions
over-the-limit fee
full-service broker
industry risk
US Treasury Bills
39. A technique to gain personal information for the purpose of identity theft - usually by means of fraudulent e-mail or pop-up messages.
non-market risk
phishing
investor services
share account
40. US treasury security that matures in 30 years
US Treasury Bonds
Rule of 72
yield
compounding interest rate
41. 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.
phishing
well-know full-service brokers
Securities and Exchange Commission
Rule of 72
42. The maximum amount an insurance company will pay if you file a claim.
non-market risk
investor services
coverage limit
collectibles
43. Brokers who provided little or no information to clients
chapter 13
ATM - Automatic Teller Machine
discount brokers
Personal Identification Number - PIN
44. An amount that credit card companies can charge for the use of a credit card.
annual fee
full-service broker
annual report
well-known investor services
45. A form of bankruptcy that allows you to repay many of your debts over a period of time - usually no more than five years.
mutual funds
chapter 13
over-the-limit fee
municipal bonds
46. The use of long-term savings to earn a financial return
Investing
principal
debt
share draft account
47. The probability that injury - damage - or loss will occur.
grace period
risk
career
investor services
48. Amount of money that is set aside for future purchases
share account
savings
values
US Treasury Notes
49. Spreading risk among many types of investments; one way to minimize risk
time value of money
collectibles
risk averse
diversification
50. 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.
US Treasury Bills
APR - Average Percentage Rate
compounding interest rate
universal default