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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 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.
social security tax
annuities
risk taker
principal
2. A chosen pursuit - profession - or occupation
portfolio
credit report
career
risk
3. A bank account against which the depositor can draw checks payable on demand.
strategic investing
APR - Average Percentage Rate
credit score
checking account
4. A for-profit company that is owned by its stockholders and provides savings and checking accounts and other financial services to its customers.
bank
wants
US Treasury Bonds
checking account
5. A formal contract to repay borrowed money with interest at fixed intervals
savings
financial pages
bond
permanent investment
6. Wall Street Journal and Barron's
US Treasury Bonds
pay yourself first - P.Y.F.
well-known financial newspapers
full-service broker
7. Expenses that are not fixed.
spending plan
bankruptcy
savings account
variable expenses
8. US treasury security that matures in 30 years
US Treasury Bonds
industry risk
full-service broker
bank
9. Property consisting of houses and land
over-the-limit fee
risk management
real estate
Securities and Exchange Commission
10. The use of long-term savings to earn a financial return
Investing
interest-rate risk
credit history
risk management
11. 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.
opportunity cost
systematic investing
mutual fund
US Treasury Bills
12. The chance that inflation will rise faster than the rate of return on an investment
discount brokers
spyware
interest-rate risk
bank
13. Losses in an investment as a result of the business cycle
inflation
bond
career
market risk
14. Investors who are afraid to make investments
interest-rate risk
penny stocks
annual fee
risk averse
15. Collection of investments
stocks
portfolio
financial advisers
universal default
16. Property consisting of houses and land
savings
dividend
put-and-take account
real estate
17. 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
annual fee
yield
portfolio
18. The chance that an investment's value will decrease
credit score
investing risk
Rule of 72
well-know financial magazines
19. The portion of the profits paid to the shareholders of a company.
Personal Identification Number - PIN
Securities and Exchange Commission
dividend
collectibles
20. Newspapers list of securities
financial pages
credit limit
chapter 13
inflation
21. Smaller decisions that can result from a major decision.
company risk
variable expenses
satellite decisions
phishing
22. Merrill Lynch & Fidelity Investments & American Express
well-know full-service brokers
bond
Investing
checking account
23. The profit from an investment.
well-know full-service brokers
investor services
yield
options
24. Debt obligations of corporations
corporate bonds
US Treasury Notes
spending plan
share account
25. Investors who take to take chances
risk taker
wants
Investing
over-the-limit fee
26. Brokers who provide clients with analysis and opinions
checking account
wants
initial investing
full-service broker
27. Conservative investing; used when you have 'excess' savings
chapter 13
speculative investments
initial investing
credit
28. A legal process to get out of debt when you can no longer make all your required payments.
financial advisers
stocks
stock
bankruptcy
29. A form of bankruptcy that allows you to erase most of your debt.
risk management
chapter 7
share account
universal default
30. Things that add comfort and pleasure to your life but you can live without if you need to.
wants
diversification
US Treasury Bonds
grace period
31. Debt obligations of state or local governments
municipal bonds
checking account
credit history
wants
32. Brokers who provided little or no information to clients
non-market risk
bankruptcy
discount brokers
US Treasury Bills
33. Contacts to buy and sell commodities or stocks for a specific price on a specific date
diversification
values
stocks
futures
34. Coins & art & memorabilia or other items that are popular from time to time
compounding interest rate
universal default
over-the-limit fee
collectibles
35. The credit union term for a checking account.
debt
share draft account
maturity date
mutual fund
36. 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
credit union
bankruptcy
APR - Average Percentage Rate
37. An amount of money that is loaned on trust with the expectation that it will be repaid at a later date.
diversification
credit
Series I Savings Bond
origination fee
38. Another term for budget
debit card
spending plan
options
mutual funds
39. The chance that inflation will rise faster than the rate of return on an investment
full-service broker
dividend
interest-rate risk
futures
40. Expenses that are not fixed.
risk taker
credit history
diversification
variable expenses
41. Bonds designed for investors wanting to protect again inflation losses
state income tax
Series I Savings Bond
debt
risk
42. The maximum amount an insurance company will pay if you file a claim.
coverage limit
debt
well-know financial magazines
political risk
43. A summary of a person's borrowing and repayment history.
credit history
spending plan
company risk
bond
44. The value of What is given up when you choose one option over another.
career
principal
opportunity cost
budget
45. Associated with owning stock of similar groups of businesses
industry risk
social security tax
diversification
budget
46. Amount of money that is set aside for future purchases
savings
social security tax
yield
satellite decisions
47. The right & not the obligation & to buy or sell commodities or stocks for a specific price on a specific date
diversification
over-the-limit fee
options
well-know financial magazines
48. The difference between a lower selling price and a higher purchase price resulting in a financial loss for the seller
chapter 7
debt
capital loss
stock market
49. 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.'
chapter 7
investor services
debit card
credit limit
50. A payroll deduction collected by employers by law and sent to the state government to support state services.
collectibles
state income tax
pay yourself first - P.Y.F.
bankruptcy