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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 date on which the borrowed money must be repaid
spending plan
stocks
maturity date
Rule of 72
2. The belief - qualities - or standards that you consider important or desirable.
risk management
values
options
company risk
3. Expenses that are not fixed.
speculative investments
bankruptcy
share account
variable expenses
4. The credit union term for a savings account.
municipal bonds
investing risk
interest-rate risk
share account
5. Uncontrollable and unpredictable events that cause an investment to lose value
non-market risk
satellite decisions
investing risk
bank
6. Investors who take to take chances
risk taker
Temporary investment
mutual funds
risk
7. A fee charged to a borrower (especially for a mortgage loan) to cover the costs of initiating the loan.
rate of return
annual fee
ATM - Automatic Teller Machine
origination fee
8. The process of dealing with the chance of a potential personal or financial loss.
collectibles
risk management
stock
universal default
9. A financial institution owned by its members that provides savings and checking accounts and other services to its membership at low fees.
credit union
well-know full-service brokers
Personal Identification Number - PIN
market risk
10. Collection of investments
dividend
strategic investing
portfolio
discount brokers
11. The practice of investing a fixed amount into the same investment at regular intervals - regardless of what the stock market is doing.
discount brokers
bank
dollar cost average
credit limit
12. The maximum amount an insurance company will pay if you file a claim.
phishing
coverage limit
delayed gratification
put-and-take account
13. A detailed record of your personal credit and financial transactions.
credit report
tax deferred
permanent investment
mutual fund
14. A payroll deduction collected by employers by law and sent to the state government to support state services.
checking account
satellite decisions
state income tax
values
15. Summary of a corporation's financial condition
portfolio
yield
annual report
credit union
16. The setting aside of money for future use or other investments
pay yourself first - P.Y.F.
well-know financial magazines
Series EE Savings Bond
time value of money
17. Reducing investment risk by putting money in several different types of investments.
market risk
spending plan
futures
diversification
18. The maximum amount an insurance company will pay if you file a claim.
coverage limit
wants
futures
discount brokers
19. The willingness to give up something you want now in return for something better in the future.
delayed gratification
values
pay yourself first - P.Y.F.
strategic investing
20. Movement of money you receive and the money you spend
principal
penny stocks
social security tax
cash flow
21. A form of bankruptcy that allows you to erase most of your debt.
chapter 7
short term goal
Rule of 72
annual fee
22. Charles Schwab & TD Ameritrade & E*TRADE
well-known discount brokers
cash flow
phishing
political risk
23. Maximum amount of credit a lender will extend to a customer.
put-and-take account
yield
credit limit
satellite decisions
24. Companies that provide extensive financial data to clients
investor services
penny stocks
well-know financial magazines
dividend
25. Merrill Lynch & Fidelity Investments & American Express
well-know full-service brokers
stock market
risk management
non-market risk
26. Expenses that aren't paid every month and can be either fixed or variable.
credit limit
maturity date
credit
periodic or occasional expenses
27. A government sector that requires all public corporations to make annual reports available to their stockholders
risk taker
diversification
Securities and Exchange Commission
ATM - Automatic Teller Machine
28. Property consisting of houses and land
initial investing
real estate
mutual funds
financial pages
29. The amount of a loss you must pay out of your own pocket before the insurance company will step in and pay the rest.
initial investing
diversification
origination fee
deductible
30. Management of investment alternatives to maximize the growth of your portfolio
investing risk
compounding interest rate
strategic investing
real estate
31. The belief - qualities - or standards that you consider important or desirable.
values
US Treasury Notes
risk
stock
32. US treasury security that matures from a few days to one year
Series EE Savings Bond
dividend
US Treasury Bills
bond
33. Money used for short-term needs like emergencies; advisers recommend three to six months' net pay for set aside for this
put-and-take account
credit union
municipal bonds
financial advisers
34. Business Weekly & Forbes & Money
coverage limit
investor services
well-know financial magazines
deductible
35. Wall Street Journal and Barron's
Securities and Exchange Commission
well-known financial newspapers
universal default
financial pages
36. Earning interest on interest.
compounding interest rate
variable expenses
budget
bank
37. The portion of the profits paid to the shareholders of a company.
annual report
bond
principal
dividend
38. A summary of a person's borrowing and repayment history.
credit history
yield
market risk
credit report
39. The portion of the profits paid to the shareholders of a company.
Securities and Exchange Commission
capital loss
time value of money
dividend
40. The profit from an investment.
yield
spyware
inflation
satellite decisions
41. A form of bankruptcy that allows you to repay many of your debts over a period of time - usually no more than five years.
strategic investing
dividend
tax deferred
chapter 13
42. Charles Schwab & TD Ameritrade & E*TRADE
stock market
municipal bonds
well-known discount brokers
periodic or occasional expenses
43. A certificate documenting the shareholder's ownership in the corporation
stock
systematic investing
US Treasury Bonds
Rule of 72
44. Fee on credit card for making charges above your credit limit.
interest-rate risk
grace period
over-the-limit fee
capital gain
45. Regular and planned investments
financial pages
share draft account
portfolio
systematic investing
46. The place where stocks are bought and sold.
risk averse
well-know financial magazines
stock market
social security tax
47. Uncontrollable and unpredictable events that cause an investment to lose value
non-market risk
dollar cost average
risk averse
spyware
48. A chosen pursuit - profession - or occupation
career
strategic investing
real estate
stock market
49. A legal process to get out of debt when you can no longer make all your required payments.
mutual funds
financial pages
bankruptcy
permanent investment
50. Wall Street Journal and Barron's
well-known financial newspapers
compounding interest rate
savings
risk averse