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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. Companies that provide extensive financial data to clients
chapter 7
investor services
Securities and Exchange Commission
annual fee
2. Associated with owning stock of similar groups of businesses
market risk
origination fee
industry risk
APR - Average Percentage Rate
3. The amount of a loss you must pay out of your own pocket before the insurance company will step in and pay the rest.
deductible
market risk
principal
opportunity cost
4. Merrill Lynch & Fidelity Investments & American Express
delayed gratification
well-known financial newspapers
penny stocks
well-know full-service brokers
5. An amount that credit card companies can charge for the use of a credit card.
deductible
variable expenses
universal default
annual fee
6. A fee charged to a borrower (especially for a mortgage loan) to cover the costs of initiating the loan.
investing risk
political risk
dividend
origination fee
7. The credit union term for a checking account.
share draft account
annual fee
systematic investing
social security tax
8. A government sector that requires all public corporations to make annual reports available to their stockholders
Series EE Savings Bond
state income tax
real estate
Securities and Exchange Commission
9. Things that add comfort and pleasure to your life but you can live without if you need to.
market risk
principal
risk management
wants
10. Things that add comfort and pleasure to your life but you can live without if you need to.
wants
well-know financial magazines
real estate
Personal Identification Number - PIN
11. Standard and Poor's and Moody's
dividend
well-know financial magazines
well-known investor services
real estate
12. Bonds designed for investors wanting to protect again inflation losses
periodic or occasional expenses
diversification
Series I Savings Bond
Rule of 72
13. 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.
risk taker
universal default
variable expenses
corporate bonds
14. The unique passcode number you use to get access to your savings and/or checking account
cash flow
Personal Identification Number - PIN
delayed gratification
chapter 7
15. Standard and Poor's and Moody's
universal default
stocks
industry risk
well-known investor services
16. US treasury security that matures in 30 years
penny stocks
well-known discount brokers
US Treasury Bonds
credit report
17. 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.
Securities and Exchange Commission
bond
mutual fund
collectibles
18. Bold and high-risk investments
systematic investing
speculative investments
APR - Average Percentage Rate
deductible
19. A general and progressive increase in prices
checking account
inflation
credit history
bond
20. Low-priced stocks of small companies that have no track record
annuities
company risk
well-known financial newspapers
penny stocks
21. The belief - qualities - or standards that you consider important or desirable.
state income tax
futures
delayed gratification
values
22. A technique to gain personal information for the purpose of identity theft - usually by means of fraudulent e-mail or pop-up messages.
discount brokers
debit card
options
phishing
23. The amount a corporation borrowed in a bond situation
US Treasury Notes
savings account
principal
delayed gratification
24. A form of bankruptcy that allows you to erase most of your debt.
Personal Identification Number - PIN
corporate bonds
rate of return
chapter 7
25. Actions that the government might take that would reduce the value of an investment
political risk
Rule of 72
deductible
rate of return
26. Uncontrollable and unpredictable events that cause an investment to lose value
industry risk
debt
bond
non-market risk
27. Associated with owning stock of only one company
company risk
principal
principal
speculative investments
28. Newspapers list of securities
credit report
rate of return
social security tax
financial pages
29. Investing with a series of regular payments; usually associated with life insurance companies
annuities
short term goal
credit
principal
30. Fee on credit card for making charges above your credit limit.
annuities
over-the-limit fee
risk management
state income tax
31. A term that describes investments on which earnings are not taxed until retirement
state income tax
industry risk
tax deferred
wants
32. The chance that an investment's value will decrease
Series I Savings Bond
APR - Average Percentage Rate
investing risk
initial investing
33. Fee on credit card for making charges above your credit limit.
over-the-limit fee
risk taker
yield
yield
34. A for-profit company that is owned by its stockholders and provides savings and checking accounts and other financial services to its customers.
collectibles
bank
origination fee
interest
35. 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.'
debit card
budget
savings account
grace period
36. A fee charged to a borrower (especially for a mortgage loan) to cover the costs of initiating the loan.
capital loss
origination fee
annual report
credit
37. A spending plan for managing money during a given period of time.
tax deferred
credit union
budget
stocks
38. A form of bankruptcy that allows you to repay many of your debts over a period of time - usually no more than five years.
deductible
chapter 13
diversification
financial advisers
39. A spending plan for managing money during a given period of time.
credit
budget
US Treasury Bills
investing risk
40. Expenses that are not fixed.
ATM - Automatic Teller Machine
political risk
variable expenses
Rule of 72
41. Another term for budget
spending plan
collectibles
share account
ATM - Automatic Teller Machine
42. A detailed record of your personal credit and financial transactions.
bankruptcy
Investing
cash flow
credit report
43. A legal process to get out of debt when you can no longer make all your required payments.
company risk
bankruptcy
spyware
well-know financial magazines
44. Smaller decisions that can result from a major decision.
capital gain
US Treasury Bills
capital loss
satellite decisions
45. A form of bankruptcy that allows you to erase most of your debt.
state income tax
savings account
dollar cost average
chapter 7
46. The portion of the profits paid to the shareholders of a company.
dividend
speculative investments
bankruptcy
spending plan
47. The chance that an investment's value will decrease
interest
risk averse
grace period
investing risk
48. 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.
capital loss
mutual fund
well-known investor services
credit
49. A technique used for estimating the number of years required to double your money at a given rate
political risk
Rule of 72
Series I Savings Bond
permanent investment
50. The date on which the borrowed money must be repaid
checking account
debit card
well-know full-service brokers
maturity date