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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 setting aside of money for future use or other investments
short term goal
career
origination fee
pay yourself first - P.Y.F.
2. Contacts to buy and sell commodities or stocks for a specific price on a specific date
savings
futures
portfolio
inflation
3. Coins & art & memorabilia or other items that are popular from time to time
market risk
Rule of 72
collectibles
municipal bonds
4. US treasury security that matures in 2 & 5 & or 10 years
Temporary investment
share draft account
US Treasury Notes
credit
5. A goal to be achieved within the next three months.
discount brokers
put-and-take account
short term goal
capital gain
6. The process of dealing with the chance of a potential personal or financial loss.
share account
dollar cost average
risk management
systematic investing
7. Management of investment alternatives to maximize the growth of your portfolio
dividend
financial pages
company risk
strategic investing
8. A general and progressive increase in prices
inflation
periodic or occasional expenses
debt
cash flow
9. Bonds designed for investors wanting to protect again inflation losses
Series I Savings Bond
well-known discount brokers
Temporary investment
universal default
10. An electronic machine that bank customers and credit union members can use to withdraw cash and make other financial transactions.
risk management
share draft account
well-know financial magazines
ATM - Automatic Teller Machine
11. Newspapers list of securities
financial pages
share draft account
portfolio
futures
12. Low-priced stocks of small companies that have no track record
spyware
put-and-take account
wants
penny stocks
13. Expenses that aren't paid every month and can be either fixed or variable.
credit history
well-known discount brokers
periodic or occasional expenses
grace period
14. Companies that provide extensive financial data to clients
Investing
rate of return
grace period
investor services
15. Associated with owning stock of only one company
options
investor services
bankruptcy
company risk
16. A summary of a person's borrowing and repayment history.
dollar cost average
credit history
Investing
diversification
17. A payroll deduction collected by employers by law and sent to the state government to support state services.
state income tax
bank
origination fee
annual report
18. Fee on credit card for making charges above your credit limit.
risk averse
principal
rate of return
over-the-limit fee
19. Debt obligations of state or local governments
full-service broker
municipal bonds
diversification
annuities
20. A formal contract to repay borrowed money with interest at fixed intervals
annual report
yield
credit union
bond
21. 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.
principal
deductible
universal default
options
22. The right & not the obligation & to buy or sell commodities or stocks for a specific price on a specific date
grace period
opportunity cost
options
discount brokers
23. The date on which the borrowed money must be repaid
real estate
credit limit
credit score
maturity date
24. 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.
deductible
discount brokers
time value of money
Rule of 72
25. The amount a corporation borrowed in a bond situation
phishing
US Treasury Bills
strategic investing
principal
26. Expenses that are not fixed.
bond
variable expenses
US Treasury Bonds
share draft account
27. Expenses that aren't paid every month and can be either fixed or variable.
compounding interest rate
periodic or occasional expenses
futures
share account
28. A goal to be achieved within the next three months.
credit union
phishing
short term goal
debt
29. The credit union term for a checking account.
industry risk
credit
share draft account
credit limit
30. Management of investment alternatives to maximize the growth of your portfolio
mutual funds
strategic investing
coverage limit
variable expenses
31. A form of bankruptcy that allows you to repay many of your debts over a period of time - usually no more than five years.
dollar cost average
chapter 13
pay yourself first - P.Y.F.
debit card
32. Discount bonds; a bond purchased for less than the maturity value; example you buy a $50 bond for $25
Series EE Savings Bond
Personal Identification Number - PIN
bankruptcy
interest-rate risk
33. A chosen pursuit - profession - or occupation
well-known discount brokers
opportunity cost
well-know financial magazines
career
34. The entire amount of money you owe to lenders
state income tax
budget
savings
debt
35. Investing with a series of regular payments; usually associated with life insurance companies
company risk
financial advisers
bond
annuities
36. Uncontrollable and unpredictable events that cause an investment to lose value
bond
yield
non-market risk
Personal Identification Number - PIN
37. Investors who take to take chances
bond
annual fee
risk taker
phishing
38. The difference between a higher selling price and a lower purchase price - resulting in a financial gain for the seller
share account
capital gain
dividend
speculative investments
39. The maximum amount an insurance company will pay if you file a claim.
coverage limit
capital gain
well-know full-service brokers
Rule of 72
40. Movement of money you receive and the money you spend
capital gain
cash flow
well-known investor services
wants
41. A technique to gain personal information for the purpose of identity theft - usually by means of fraudulent e-mail or pop-up messages.
phishing
credit score
checking account
US Treasury Bonds
42. A technique used for estimating the number of years required to double your money at a given rate
Personal Identification Number - PIN
speculative investments
Rule of 72
portfolio
43. Investment choices that will be re-evaluated within a year or less
annual report
credit score
Temporary investment
compounding interest rate
44. A fee charged to a borrower (especially for a mortgage loan) to cover the costs of initiating the loan.
origination fee
political risk
Rule of 72
systematic investing
45. Bold and high-risk investments
speculative investments
risk management
risk taker
Investing
46. Debt obligations of corporations
maturity date
share draft account
corporate bonds
Rule of 72
47. The willingness to give up something you want now in return for something better in the future.
credit
delayed gratification
stock market
non-market risk
48. Discount bonds; a bond purchased for less than the maturity value; example you buy a $50 bond for $25
risk
values
Series EE Savings Bond
risk management
49. 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.
diversification
annual fee
capital gain
social security tax
50. The entire amount of money you owe to lenders
debt
municipal bonds
Series EE Savings Bond
well-know financial magazines