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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 goal to be achieved within the next three months.
systematic investing
spyware
short term goal
credit
2. A fee charged to a borrower (especially for a mortgage loan) to cover the costs of initiating the loan.
credit report
origination fee
investing risk
non-market risk
3. A unit of ownership in a corporation
stocks
diversification
mutual fund
stock market
4. Investors who take to take chances
risk taker
maturity date
savings account
spending plan
5. Brokers who provide clients with analysis and opinions
strategic investing
full-service broker
risk taker
annual report
6. A financial institution owned by its members that provides savings and checking accounts and other services to its membership at low fees.
credit union
savings account
stocks
investor services
7. Earning interest on interest.
chapter 13
cash flow
US Treasury Bonds
compounding interest rate
8. The maximum amount an insurance company will pay if you file a claim.
coverage limit
variable expenses
permanent investment
well-known investor services
9. The amount a corporation pays at a fixed amount when repaying a bond
time value of money
wants
interest
Investing
10. A bank account against which the depositor can draw checks payable on demand.
checking account
principal
wants
mutual fund
11. A technique to gain personal information for the purpose of identity theft - usually by means of fraudulent e-mail or pop-up messages.
credit
short term goal
investor services
phishing
12. An electronic machine that bank customers and credit union members can use to withdraw cash and make other financial transactions.
checking account
ATM - Automatic Teller Machine
over-the-limit fee
time value of money
13. A legal process to get out of debt when you can no longer make all your required payments.
bankruptcy
annuities
systematic investing
ATM - Automatic Teller Machine
14. An amount of money that is loaned on trust with the expectation that it will be repaid at a later date.
credit
diversification
Temporary investment
APR - Average Percentage Rate
15. Companies that provide extensive financial data to clients
well-know financial magazines
investor services
stocks
systematic investing
16. A certificate documenting the shareholder's ownership in the corporation
stock
collectibles
universal default
chapter 7
17. The difference between a higher selling price and a lower purchase price - resulting in a financial gain for the seller
non-market risk
spending plan
savings account
capital gain
18. Merrill Lynch & Fidelity Investments & American Express
checking account
well-know full-service brokers
annual fee
phishing
19. Discount bonds; a bond purchased for less than the maturity value; example you buy a $50 bond for $25
universal default
annual report
Series EE Savings Bond
investing risk
20. Losses in an investment as a result of the business cycle
origination fee
credit history
market risk
state income tax
21. A financial institution owned by its members that provides savings and checking accounts and other services to its membership at low fees.
credit union
satellite decisions
deductible
compounding interest rate
22. Debt obligations of state or local governments
full-service broker
tax deferred
well-know financial magazines
municipal bonds
23. The difference between a higher selling price and a lower purchase price - resulting in a financial gain for the seller
short term goal
rate of return
put-and-take account
capital gain
24. The difference between a lower selling price and a higher purchase price resulting in a financial loss for the seller
spyware
capital loss
portfolio
universal default
25. 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
savings account
well-known discount brokers
Rule of 72
26. The chance that an investment's value will decrease
company risk
Temporary investment
credit score
investing risk
27. The idea that money today is worth more than the same amount of money in the future due to its potential earning capacity.
Series EE Savings Bond
time value of money
periodic or occasional expenses
full-service broker
28. The setting aside of money for future use or other investments
APR - Average Percentage Rate
spending plan
investor services
pay yourself first - P.Y.F.
29. A general and progressive increase in prices
stock market
inflation
Investing
discount brokers
30. An investment security that is actually a diversified portfolio of equities - bonds or other securities. Investors purchase shares and can sell them at any time.
company risk
wants
mutual fund
risk averse
31. Companies that provide extensive financial data to clients
financial pages
investor services
annuities
satellite decisions
32. Property consisting of houses and land
coverage limit
share account
real estate
well-know financial magazines
33. An amount that credit card companies can charge for the use of a credit card.
spending plan
well-known investor services
annual fee
savings account
34. Investors who are afraid to make investments
penny stocks
risk averse
Rule of 72
deductible
35. Expenses that aren't paid every month and can be either fixed or variable.
periodic or occasional expenses
universal default
financial pages
variable expenses
36. The credit union term for a checking account.
well-known investor services
share draft account
dividend
strategic investing
37. 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.
Investing
Rule of 72
savings account
debit card
38. The credit union term for a savings account.
share account
Personal Identification Number - PIN
well-known discount brokers
US Treasury Bills
39. The idea that money today is worth more than the same amount of money in the future due to its potential earning capacity.
US Treasury Notes
risk averse
time value of money
credit limit
40. Contacts to buy and sell commodities or stocks for a specific price on a specific date
put-and-take account
options
financial advisers
futures
41. A summary of a person's borrowing and repayment history.
options
spending plan
stocks
credit history
42. Summary of a corporation's financial condition
capital gain
bankruptcy
annual report
chapter 7
43. 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.
options
state income tax
social security tax
credit
44. US treasury security that matures in 2 & 5 & or 10 years
variable expenses
credit union
spending plan
US Treasury Notes
45. The chance that inflation will rise faster than the rate of return on an investment
wants
investor services
interest-rate risk
investor services
46. A card that is used to deduct a purchase amount directly from your checking account instead of drawing on a line of credit; also called 'check card.'
rate of return
debit card
chapter 7
corporate bonds
47. The maximum amount an insurance company will pay if you file a claim.
Series I Savings Bond
coverage limit
cash flow
Rule of 72
48. Collection of investments
debit card
risk averse
credit score
portfolio
49. The profit from an investment.
cash flow
yield
company risk
credit limit
50. Regular and planned investments
spending plan
systematic investing
social security tax
capital loss