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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. Newspapers list of securities
discount brokers
mutual funds
risk averse
financial pages
2. A unit of ownership in a corporation
financial advisers
stocks
inflation
opportunity cost
3. Charles Schwab & TD Ameritrade & E*TRADE
share account
portfolio
interest
well-known discount brokers
4. US treasury security that matures from a few days to one year
wants
penny stocks
US Treasury Bills
credit limit
5. The total amount of what it costs you to use credit in a given year. It is expressed as a percentage of the amount borrowed.
APR - Average Percentage Rate
savings account
discount brokers
put-and-take account
6. Low-priced stocks of small companies that have no track record
spending plan
penny stocks
satellite decisions
US Treasury Bills
7. The increase or decrease in the original purchase price of an investment over a period of time.
stock
Temporary investment
investor services
rate of return
8. Earning interest on interest.
Personal Identification Number - PIN
compounding interest rate
annuities
pay yourself first - P.Y.F.
9. Amount of money that is set aside for future purchases
delayed gratification
savings
credit limit
universal default
10. The belief - qualities - or standards that you consider important or desirable.
grace period
corporate bonds
Rule of 72
values
11. Smaller decisions that can result from a major decision.
satellite decisions
strategic investing
maturity date
risk averse
12. 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
time value of money
investing risk
chapter 13
13. The place where stocks are bought and sold.
variable expenses
stock market
spyware
over-the-limit fee
14. The chance that inflation will rise faster than the rate of return on an investment
industry risk
Rule of 72
time value of money
interest-rate risk
15. Uncontrollable and unpredictable events that cause an investment to lose value
share draft account
Series EE Savings Bond
annual report
non-market risk
16. Debt obligations of state or local governments
well-known financial newspapers
opportunity cost
municipal bonds
investing risk
17. Merrill Lynch & Fidelity Investments & American Express
Rule of 72
financial advisers
well-know full-service brokers
well-known financial newspapers
18. The profit from an investment.
maturity date
credit report
pay yourself first - P.Y.F.
yield
19. Newspapers list of securities
Personal Identification Number - PIN
well-known investor services
annuities
financial pages
20. Spreading risk among many types of investments; one way to minimize risk
tax deferred
diversification
deductible
stock
21. Summary of a corporation's financial condition
Personal Identification Number - PIN
political risk
annual report
variable expenses
22. Actions that the government might take that would reduce the value of an investment
political risk
investor services
industry risk
ATM - Automatic Teller Machine
23. The entire amount of money you owe to lenders
debt
deductible
Series I Savings Bond
well-known financial newspapers
24. A bad side effect of free downloads that may be used to send you pop-up ads - redirect your computer to unwanted Web sites - monitor your Internet surfing - or record your keystrokes in an effort to steal your identity.
credit limit
diversification
Series I Savings Bond
spyware
25. The value of What is given up when you choose one option over another.
financial advisers
municipal bonds
Investing
opportunity cost
26. Discount bonds; a bond purchased for less than the maturity value; example you buy a $50 bond for $25
maturity date
Series EE Savings Bond
satellite decisions
spending plan
27. The setting aside of money for future use or other investments
pay yourself first - P.Y.F.
short term goal
well-known investor services
mutual fund
28. Actions that the government might take that would reduce the value of an investment
political risk
time value of money
risk taker
stock
29. US treasury security that matures from a few days to one year
municipal bonds
futures
debit card
US Treasury Bills
30. Merrill Lynch & Fidelity Investments & American Express
share draft account
short term goal
origination fee
well-know full-service brokers
31. Bold and high-risk investments
savings account
discount brokers
share account
speculative investments
32. Companies that provide extensive financial data to clients
strategic investing
financial pages
corporate bonds
investor services
33. A technique used for estimating the number of years required to double your money at a given rate
portfolio
debit card
Rule of 72
credit
34. A goal to be achieved within the next three months.
principal
short term goal
put-and-take account
well-known discount brokers
35. 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.
Rule of 72
values
company risk
career
36. The maximum amount an insurance company will pay if you file a claim.
coverage limit
well-know full-service brokers
dollar cost average
principal
37. The chance that an investment's value will decrease
investing risk
Series EE Savings Bond
full-service broker
dividend
38. The credit union term for a savings account.
well-know financial magazines
share account
Personal Identification Number - PIN
wants
39. US treasury security that matures in 2 & 5 & or 10 years
US Treasury Notes
industry risk
chapter 7
risk averse
40. 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
Series I Savings Bond
ATM - Automatic Teller Machine
risk management
41. Uncontrollable and unpredictable events that cause an investment to lose value
Securities and Exchange Commission
inflation
non-market risk
initial investing
42. Conservative investing; used when you have 'excess' savings
futures
deductible
initial investing
spending plan
43. A summary of a person's borrowing and repayment history.
portfolio
credit history
debit card
initial investing
44. An electronic machine that bank customers and credit union members can use to withdraw cash and make other financial transactions.
stocks
ATM - Automatic Teller Machine
credit limit
capital gain
45. Management of investment alternatives to maximize the growth of your portfolio
industry risk
ATM - Automatic Teller Machine
origination fee
strategic investing
46. A financial institution owned by its members that provides savings and checking accounts and other services to its membership at low fees.
municipal bonds
full-service broker
over-the-limit fee
credit union
47. Investment choices that will be held for long periods
permanent investment
well-known discount brokers
origination fee
bankruptcy
48. A government sector that requires all public corporations to make annual reports available to their stockholders
checking account
Securities and Exchange Commission
put-and-take account
full-service broker
49. The amount a corporation pays at a fixed amount when repaying a bond
compounding interest rate
credit limit
interest
state income tax
50. An amount of money that is loaned on trust with the expectation that it will be repaid at a later date.
municipal bonds
penny stocks
Temporary investment
credit