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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. A general and progressive increase in prices
well-know financial magazines
inflation
collectibles
penny stocks
2. The place where stocks are bought and sold.
stock market
variable expenses
corporate bonds
deductible
3. Associated with owning stock of only one company
well-know financial magazines
diversification
checking account
company risk
4. An amount of money that is loaned on trust with the expectation that it will be repaid at a later date.
annual fee
credit
risk management
collectibles
5. Conservative investing; used when you have 'excess' savings
savings account
Personal Identification Number - PIN
initial investing
financial pages
6. Actions that the government might take that would reduce the value of an investment
permanent investment
bank
mutual fund
political risk
7. The difference between a higher selling price and a lower purchase price - resulting in a financial gain for the seller
diversification
capital gain
well-known financial newspapers
pay yourself first - P.Y.F.
8. The belief - qualities - or standards that you consider important or desirable.
values
tax deferred
Rule of 72
initial investing
9. A fee charged to a borrower (especially for a mortgage loan) to cover the costs of initiating the loan.
industry risk
chapter 13
origination fee
credit limit
10. Associated with owning stock of similar groups of businesses
systematic investing
Series I Savings Bond
bond
industry risk
11. The probability that injury - damage - or loss will occur.
values
origination fee
satellite decisions
risk
12. Money used for short-term needs like emergencies; advisers recommend three to six months' net pay for set aside for this
inflation
credit union
put-and-take account
speculative investments
13. 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.
values
Rule of 72
well-know full-service brokers
well-know financial magazines
14. Losses in an investment as a result of the business cycle
ATM - Automatic Teller Machine
market risk
coverage limit
mutual funds
15. Wall Street Journal and Barron's
real estate
well-known financial newspapers
company risk
well-know full-service brokers
16. Newspapers list of securities
interest
yield
debt
financial pages
17. Collection of investments
full-service broker
Temporary investment
portfolio
company risk
18. A form of bankruptcy that allows you to repay many of your debts over a period of time - usually no more than five years.
non-market risk
Series I Savings Bond
chapter 13
full-service broker
19. A certificate documenting the shareholder's ownership in the corporation
credit history
checking account
stock
well-known discount brokers
20. The probability that injury - damage - or loss will occur.
credit union
well-known discount brokers
risk
values
21. A certificate documenting the shareholder's ownership in the corporation
well-known financial newspapers
stock
phishing
risk taker
22. The value of What is given up when you choose one option over another.
opportunity cost
risk
options
career
23. 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
dollar cost average
systematic investing
political risk
24. The amount of money someone is willing to loan you.
principal
APR - Average Percentage Rate
credit score
diversification
25. Companies that provide extensive financial data to clients
credit history
capital loss
satellite decisions
investor services
26. The place where stocks are bought and sold.
well-known investor services
bond
stock market
strategic investing
27. Investment choices that will be re-evaluated within a year or less
Temporary investment
rate of return
variable expenses
discount brokers
28. A spending plan for managing money during a given period of time.
ATM - Automatic Teller Machine
grace period
well-known investor services
budget
29. A summary of a person's borrowing and repayment history.
credit history
share account
state income tax
stock
30. The use of long-term savings to earn a financial return
chapter 7
Investing
credit score
chapter 13
31. Collection of investments
risk
origination fee
portfolio
political risk
32. A legal process to get out of debt when you can no longer make all your required payments.
bankruptcy
coverage limit
Series EE Savings Bond
speculative investments
33. The amount a corporation pays at a fixed amount when repaying a bond
credit limit
diversification
checking account
interest
34. The willingness to give up something you want now in return for something better in the future.
bond
inflation
interest-rate risk
delayed gratification
35. The chance that an investment's value will decrease
dollar cost average
investing risk
dividend
mutual fund
36. The setting aside of money for future use or other investments
career
principal
pay yourself first - P.Y.F.
industry risk
37. Maximum amount of credit a lender will extend to a customer.
US Treasury Bonds
Personal Identification Number - PIN
well-known financial newspapers
credit limit
38. A goal to be achieved within the next three months.
mutual funds
annual report
time value of money
short term goal
39. Movement of money you receive and the money you spend
mutual fund
financial pages
ATM - Automatic Teller Machine
cash flow
40. The unique passcode number you use to get access to your savings and/or checking account
market risk
bank
APR - Average Percentage Rate
Personal Identification Number - PIN
41. A term that describes investments on which earnings are not taxed until retirement
Series EE Savings Bond
tax deferred
maturity date
credit history
42. The use of long-term savings to earn a financial return
Investing
initial investing
state income tax
spyware
43. US treasury security that matures in 30 years
US Treasury Bonds
discount brokers
annual fee
futures
44. People trained to give investment advise based on your goals & age & lifestyle & etc
financial advisers
bankruptcy
principal
savings account
45. A chosen pursuit - profession - or occupation
career
variable expenses
options
delayed gratification
46. Coins & art & memorabilia or other items that are popular from time to time
well-known financial newspapers
collectibles
values
well-known discount brokers
47. An amount that credit card companies can charge for the use of a credit card.
annual fee
municipal bonds
Rule of 72
mutual fund
48. Debt obligations of state or local governments
delayed gratification
systematic investing
municipal bonds
debt
49. Money used for short-term needs like emergencies; advisers recommend three to six months' net pay for set aside for this
opportunity cost
put-and-take account
Series EE Savings Bond
municipal bonds
50. Investing with a series of regular payments; usually associated with life insurance companies
annuities
universal default
full-service broker
risk taker