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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. Regular and planned investments
initial investing
systematic investing
US Treasury Bills
US Treasury Bonds
2. Investment choices that will be held for long periods
industry risk
spyware
US Treasury Bonds
permanent investment
3. Property consisting of houses and land
interest-rate risk
real estate
rate of return
risk
4. A technique used for estimating the number of years required to double your money at a given rate
options
diversification
grace period
Rule of 72
5. Companies that provide extensive financial data to clients
tax deferred
Series EE Savings Bond
options
investor services
6. Expenses that are not fixed.
well-known discount brokers
rate of return
variable expenses
stock
7. Earning interest on interest.
checking account
well-known investor services
Securities and Exchange Commission
compounding interest rate
8. Standard and Poor's and Moody's
ATM - Automatic Teller Machine
variable expenses
well-known investor services
capital gain
9. A form of bankruptcy that allows you to repay many of your debts over a period of time - usually no more than five years.
over-the-limit fee
wants
credit history
chapter 13
10. A fee charged to a borrower (especially for a mortgage loan) to cover the costs of initiating the loan.
origination fee
Personal Identification Number - PIN
stocks
rate of return
11. 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.
savings account
annual report
US Treasury Bills
portfolio
12. Charles Schwab & TD Ameritrade & E*TRADE
financial pages
bankruptcy
strategic investing
well-known discount brokers
13. 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.
share draft account
credit limit
social security tax
bankruptcy
14. Another term for budget
coverage limit
compounding interest rate
spending plan
credit union
15. Conservative investing; used when you have 'excess' savings
pay yourself first - P.Y.F.
initial investing
variable expenses
capital loss
16. Losses in an investment as a result of the business cycle
discount brokers
portfolio
market risk
dividend
17. A term that describes investments on which earnings are not taxed until retirement
bank
tax deferred
credit score
time value of money
18. An amount that credit card companies can charge for the use of a credit card.
annual fee
well-known investor services
delayed gratification
Securities and Exchange Commission
19. A certificate documenting the shareholder's ownership in the corporation
periodic or occasional expenses
career
stock
universal default
20. A technique to gain personal information for the purpose of identity theft - usually by means of fraudulent e-mail or pop-up messages.
state income tax
Personal Identification Number - PIN
penny stocks
phishing
21. A goal to be achieved within the next three months.
discount brokers
short term goal
US Treasury Bills
Securities and Exchange Commission
22. The amount a corporation borrowed in a bond situation
futures
deductible
principal
spyware
23. The increase or decrease in the original purchase price of an investment over a period of time.
phishing
rate of return
inflation
put-and-take account
24. A general and progressive increase in prices
inflation
origination fee
opportunity cost
US Treasury Notes
25. Debt obligations of state or local governments
social security tax
Rule of 72
municipal bonds
annual fee
26. The idea that money today is worth more than the same amount of money in the future due to its potential earning capacity.
well-know financial magazines
capital gain
time value of money
grace period
27. The entire amount of money you owe to lenders
debt
grace period
wants
futures
28. The amount a corporation pays at a fixed amount when repaying a bond
debt
systematic investing
interest
investor services
29. A unit of ownership in a corporation
bond
savings
stocks
share account
30. Reducing investment risk by putting money in several different types of investments.
diversification
principal
real estate
inflation
31. Amount of money that is set aside for future purchases
savings
investor services
Investing
annual fee
32. A legal process to get out of debt when you can no longer make all your required payments.
bankruptcy
APR - Average Percentage Rate
capital loss
origination fee
33. A detailed record of your personal credit and financial transactions.
credit report
diversification
investing risk
US Treasury Notes
34. An amount of money that is loaned on trust with the expectation that it will be repaid at a later date.
bankruptcy
annual fee
credit
credit limit
35. Management of investment alternatives to maximize the growth of your portfolio
credit report
Rule of 72
strategic investing
satellite decisions
36. The date on which the borrowed money must be repaid
futures
maturity date
Rule of 72
stocks
37. Debt obligations of corporations
coverage limit
phishing
maturity date
corporate bonds
38. The practice of investing a fixed amount into the same investment at regular intervals - regardless of what the stock market is doing.
bankruptcy
risk averse
dollar cost average
US Treasury Bills
39. A summary of a person's borrowing and repayment history.
credit history
collectibles
chapter 7
Temporary investment
40. Associated with owning stock of similar groups of businesses
savings
industry risk
yield
permanent investment
41. The maximum amount an insurance company will pay if you file a claim.
coverage limit
stocks
capital loss
well-know financial magazines
42. Expenses that aren't paid every month and can be either fixed or variable.
periodic or occasional expenses
Temporary investment
coverage limit
origination fee
43. A payroll deduction collected by employers by law and sent to the state government to support state services.
credit history
state income tax
satellite decisions
mutual fund
44. The date on which the borrowed money must be repaid
social security tax
US Treasury Bonds
maturity date
financial advisers
45. Uncontrollable and unpredictable events that cause an investment to lose value
principal
portfolio
non-market risk
chapter 7
46. Uncontrollable and unpredictable events that cause an investment to lose value
non-market risk
diversification
time value of money
inflation
47. Investment choices that will be re-evaluated within a year or less
tax deferred
Temporary investment
stock market
credit union
48. A form of bankruptcy that allows you to repay many of your debts over a period of time - usually no more than five years.
chapter 13
US Treasury Notes
strategic investing
satellite decisions
49. Companies that provide extensive financial data to clients
bankruptcy
checking account
well-know financial magazines
investor services
50. Business Weekly & Forbes & Money
market risk
interest
well-know financial magazines
credit report