SUBJECTS
|
BROWSE
|
CAREER CENTER
|
POPULAR
|
JOIN
|
LOGIN
Business Skills
|
Soft Skills
|
Basic Literacy
|
Certifications
About
|
Help
|
Privacy
|
Terms
|
Email
Search
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.
speculative investments
mutual funds
Securities and Exchange Commission
risk management
2. The setting aside of money for future use or other investments
pay yourself first - P.Y.F.
futures
interest
maturity date
3. 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.
savings
Rule of 72
APR - Average Percentage Rate
stocks
4. A spending plan for managing money during a given period of time.
budget
mutual funds
well-known investor services
state income tax
5. A formal contract to repay borrowed money with interest at fixed intervals
bond
principal
credit union
checking account
6. US treasury security that matures in 30 years
collectibles
annuities
US Treasury Bonds
share draft account
7. Discount bonds; a bond purchased for less than the maturity value; example you buy a $50 bond for $25
risk management
Series EE Savings Bond
municipal bonds
speculative investments
8. Brokers who provided little or no information to clients
spending plan
savings
variable expenses
discount brokers
9. The difference between a higher selling price and a lower purchase price - resulting in a financial gain for the seller
career
capital gain
full-service broker
put-and-take account
10. Bold and high-risk investments
diversification
bankruptcy
speculative investments
savings account
11. The chance that inflation will rise faster than the rate of return on an investment
checking account
values
investing risk
interest-rate risk
12. An amount that credit card companies can charge for the use of a credit card.
origination fee
phishing
annual report
annual fee
13. Debt obligations of state or local governments
checking account
municipal bonds
compounding interest rate
Series I Savings Bond
14. Investment choices that will be re-evaluated within a year or less
risk averse
Temporary investment
stock
well-known discount brokers
15. A certificate documenting the shareholder's ownership in the corporation
stock
principal
coverage limit
mutual funds
16. A financial institution owned by its members that provides savings and checking accounts and other services to its membership at low fees.
grace period
spending plan
credit union
well-known investor services
17. Losses in an investment as a result of the business cycle
speculative investments
systematic investing
industry risk
market risk
18. Management of investment alternatives to maximize the growth of your portfolio
share account
coverage limit
annual fee
strategic investing
19. US treasury security that matures in 2 & 5 & or 10 years
US Treasury Notes
risk management
budget
company risk
20. The maximum amount an insurance company will pay if you file a claim.
permanent investment
coverage limit
full-service broker
grace period
21. A technique used for estimating the number of years required to double your money at a given rate
mutual fund
Rule of 72
Series EE Savings Bond
annuities
22. 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.
capital gain
APR - Average Percentage Rate
variable expenses
dividend
23. An amount of money that is loaned on trust with the expectation that it will be repaid at a later date.
credit
mutual funds
debit card
well-know full-service brokers
24. Brokers who provided little or no information to clients
discount brokers
budget
risk taker
annual report
25. The amount of money someone is willing to loan you.
credit limit
principal
stocks
debt
26. Earning interest on interest.
financial advisers
Personal Identification Number - PIN
risk
compounding interest rate
27. Things that add comfort and pleasure to your life but you can live without if you need to.
well-known discount brokers
bank
Rule of 72
wants
28. Investors who take to take chances
values
risk taker
capital gain
annual fee
29. 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.
financial pages
corporate bonds
credit
spyware
30. 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.
pay yourself first - P.Y.F.
universal default
risk management
bond
31. Contacts to buy and sell commodities or stocks for a specific price on a specific date
debt
well-know financial magazines
futures
share account
32. The amount of a loss you must pay out of your own pocket before the insurance company will step in and pay the rest.
credit score
bank
principal
deductible
33. Investors who are afraid to make investments
Series EE Savings Bond
short term goal
risk averse
compounding interest rate
34. 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.
portfolio
ATM - Automatic Teller Machine
Rule of 72
tax deferred
35. Smaller decisions that can result from a major decision.
rate of return
satellite decisions
dividend
strategic investing
36. The unique passcode number you use to get access to your savings and/or checking account
collectibles
opportunity cost
Personal Identification Number - PIN
Rule of 72
37. A technique to gain personal information for the purpose of identity theft - usually by means of fraudulent e-mail or pop-up messages.
grace period
bank
phishing
full-service broker
38. A payroll deduction collected by employers by law and sent to the state government to support state services.
universal default
risk management
state income tax
mutual funds
39. Spreading risk among many types of investments; one way to minimize risk
US Treasury Notes
diversification
futures
bond
40. The date on which the borrowed money must be repaid
investing risk
stock
maturity date
bond
41. A financial institution owned by its members that provides savings and checking accounts and other services to its membership at low fees.
permanent investment
credit union
compounding interest rate
well-know financial magazines
42. Is a numerical rating - based on credit report information that represents a person's level of creditworthiness
principal
bank
credit limit
credit score
43. A spending plan for managing money during a given period of time.
compounding interest rate
budget
ATM - Automatic Teller Machine
share account
44. Collection of investments
share account
periodic or occasional expenses
portfolio
US Treasury Notes
45. A fee charged to a borrower (especially for a mortgage loan) to cover the costs of initiating the loan.
Series EE Savings Bond
investor services
phishing
origination fee
46. Investment choices that will be held for long periods
debit card
credit limit
financial advisers
permanent investment
47. A summary of a person's borrowing and repayment history.
dividend
stocks
credit history
diversification
48. Business Weekly & Forbes & Money
well-know financial magazines
stock market
periodic or occasional expenses
mutual fund
49. 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.
social security tax
share draft account
initial investing
credit report
50. The credit union term for a savings account.
share account
savings account
debit card
values