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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. Regular and planned investments
risk
Rule of 72
systematic investing
rate of return
2. Investing with a series of regular payments; usually associated with life insurance companies
credit history
origination fee
annuities
principal
3. 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.
satellite decisions
savings account
checking account
credit union
4. Is a numerical rating - based on credit report information that represents a person's level of creditworthiness
credit score
risk
wants
US Treasury Bills
5. Wall Street Journal and Barron's
well-known financial newspapers
stock
deductible
municipal bonds
6. Spreading risk among many types of investments; one way to minimize risk
municipal bonds
diversification
time value of money
wants
7. The difference between a lower selling price and a higher purchase price resulting in a financial loss for the seller
well-know full-service brokers
well-known discount brokers
capital loss
credit limit
8. 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.
cash flow
social security tax
share draft account
opportunity cost
9. Bonds designed for investors wanting to protect again inflation losses
credit history
share draft account
Series I Savings Bond
capital loss
10. The chance that an investment's value will decrease
interest
investing risk
Series EE Savings Bond
diversification
11. A payroll deduction collected by employers by law and sent to the state government to support state services.
universal default
state income tax
career
bond
12. Debt obligations of corporations
Investing
corporate bonds
well-know financial magazines
Series I Savings Bond
13. Associated with owning stock of similar groups of businesses
investing risk
checking account
budget
industry risk
14. US treasury security that matures from a few days to one year
Investing
annual fee
US Treasury Bills
share draft account
15. Newspapers list of securities
credit union
industry risk
time value of money
financial pages
16. Things that add comfort and pleasure to your life but you can live without if you need to.
time value of money
wants
principal
phishing
17. Standard and Poor's and Moody's
financial pages
well-known investor services
dollar cost average
over-the-limit fee
18. The value of What is given up when you choose one option over another.
periodic or occasional expenses
opportunity cost
well-known discount brokers
share draft account
19. The increase or decrease in the original purchase price of an investment over a period of time.
well-known financial newspapers
systematic investing
rate of return
time value of money
20. A goal to be achieved within the next three months.
investor services
mutual funds
grace period
short term goal
21. Property consisting of houses and land
share account
credit limit
stock
real estate
22. Movement of money you receive and the money you spend
cash flow
risk averse
mutual fund
Series EE Savings Bond
23. The willingness to give up something you want now in return for something better in the future.
credit union
mutual funds
delayed gratification
budget
24. The increase or decrease in the original purchase price of an investment over a period of time.
rate of return
periodic or occasional expenses
tax deferred
well-know full-service brokers
25. 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.
savings
chapter 13
spyware
speculative investments
26. Associated with owning stock of only one company
company risk
APR - Average Percentage Rate
risk management
corporate bonds
27. Uncontrollable and unpredictable events that cause an investment to lose value
credit history
non-market risk
portfolio
opportunity cost
28. The credit union term for a checking account.
values
cash flow
share draft account
put-and-take account
29. The belief - qualities - or standards that you consider important or desirable.
over-the-limit fee
values
wants
bond
30. Management of investment alternatives to maximize the growth of your portfolio
Rule of 72
strategic investing
portfolio
diversification
31. The difference between a lower selling price and a higher purchase price resulting in a financial loss for the seller
capital loss
wants
stock
tax deferred
32. The willingness to give up something you want now in return for something better in the future.
short term goal
risk management
delayed gratification
wants
33. The process of dealing with the chance of a potential personal or financial loss.
Rule of 72
well-known discount brokers
risk management
Rule of 72
34. The date on which the borrowed money must be repaid
credit
maturity date
risk taker
risk taker
35. The difference between a higher selling price and a lower purchase price - resulting in a financial gain for the seller
principal
strategic investing
capital gain
well-known discount brokers
36. A certificate documenting the shareholder's ownership in the corporation
short term goal
initial investing
discount brokers
stock
37. The difference between a higher selling price and a lower purchase price - resulting in a financial gain for the seller
risk taker
capital gain
credit
put-and-take account
38. Regular and planned investments
variable expenses
satellite decisions
US Treasury Bills
systematic investing
39. The chance that inflation will rise faster than the rate of return on an investment
interest-rate risk
chapter 13
state income tax
capital gain
40. Summary of a corporation's financial condition
tax deferred
annual report
cash flow
Securities and Exchange Commission
41. The profit from an investment.
municipal bonds
short term goal
yield
full-service broker
42. Investment choices that will be held for long periods
permanent investment
risk
share account
Temporary investment
43. The credit union term for a savings account.
well-know financial magazines
share account
capital gain
periodic or occasional expenses
44. The unique passcode number you use to get access to your savings and/or checking account
Personal Identification Number - PIN
financial advisers
non-market risk
rate of return
45. Collection of investments
savings account
maturity date
over-the-limit fee
portfolio
46. A technique used for estimating the number of years required to double your money at a given rate
well-known financial newspapers
put-and-take account
Rule of 72
inflation
47. The profit from an investment.
Personal Identification Number - PIN
Rule of 72
yield
corporate bonds
48. An amount that credit card companies can charge for the use of a credit card.
grace period
futures
annual fee
savings
49. A chosen pursuit - profession - or occupation
chapter 7
Series I Savings Bond
credit
career
50. Conservative investing; used when you have 'excess' savings
non-market risk
initial investing
credit limit
stock