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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 date on which the borrowed money must be repaid
annuities
Series EE Savings Bond
spending plan
maturity date
2. Things that add comfort and pleasure to your life but you can live without if you need to.
satellite decisions
Series EE Savings Bond
wants
risk averse
3. Charles Schwab & TD Ameritrade & E*TRADE
Personal Identification Number - PIN
Rule of 72
financial pages
well-known discount brokers
4. The belief - qualities - or standards that you consider important or desirable.
savings
values
credit
pay yourself first - P.Y.F.
5. 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.
universal default
annual report
principal
credit history
6. Property consisting of houses and land
savings
real estate
inflation
risk
7. Smaller decisions that can result from a major decision.
satellite decisions
industry risk
US Treasury Bills
variable expenses
8. Expenses that are not fixed.
inflation
variable expenses
industry risk
industry risk
9. Maximum amount of credit a lender will extend to a customer.
Rule of 72
spyware
Temporary investment
credit limit
10. Brokers who provided little or no information to clients
phishing
inflation
discount brokers
Temporary investment
11. Business Weekly & Forbes & Money
Series EE Savings Bond
short term goal
well-know financial magazines
US Treasury Notes
12. A spending plan for managing money during a given period of time.
time value of money
company risk
Series EE Savings Bond
budget
13. The difference between a lower selling price and a higher purchase price resulting in a financial loss for the seller
capital loss
US Treasury Notes
credit
investing risk
14. Investment choices that will be held for long periods
credit limit
phishing
permanent investment
maturity date
15. The maximum amount an insurance company will pay if you file a claim.
short term goal
coverage limit
mutual funds
chapter 7
16. The amount of money someone is willing to loan you.
origination fee
permanent investment
principal
municipal bonds
17. The credit union term for a savings account.
share account
portfolio
Rule of 72
debit card
18. Money used for short-term needs like emergencies; advisers recommend three to six months' net pay for set aside for this
credit
Temporary investment
penny stocks
put-and-take account
19. The belief - qualities - or standards that you consider important or desirable.
rate of return
phishing
values
capital loss
20. US treasury security that matures from a few days to one year
US Treasury Bills
risk management
US Treasury Bonds
ATM - Automatic Teller Machine
21. A formal contract to repay borrowed money with interest at fixed intervals
state income tax
bond
industry risk
municipal bonds
22. The date on which the borrowed money must be repaid
well-know financial magazines
credit limit
variable expenses
maturity date
23. The difference between a lower selling price and a higher purchase price resulting in a financial loss for the seller
capital gain
capital loss
tax deferred
time value of money
24. A goal to be achieved within the next three months.
financial advisers
dollar cost average
short term goal
permanent investment
25. Things that add comfort and pleasure to your life but you can live without if you need to.
real estate
rate of return
Rule of 72
wants
26. A chosen pursuit - profession - or occupation
delayed gratification
time value of money
career
variable expenses
27. The profit from an investment.
delayed gratification
market risk
stock market
yield
28. Bold and high-risk investments
industry risk
risk taker
checking account
speculative investments
29. Regular and planned investments
origination fee
systematic investing
credit limit
cash flow
30. A summary of a person's borrowing and repayment history.
strategic investing
credit history
debt
well-known discount brokers
31. Wall Street Journal and Barron's
well-known financial newspapers
well-known discount brokers
budget
chapter 7
32. The idea that money today is worth more than the same amount of money in the future due to its potential earning capacity.
debt
share account
time value of money
annual fee
33. The unique passcode number you use to get access to your savings and/or checking account
wants
credit report
chapter 13
Personal Identification Number - PIN
34. 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.
risk
APR - Average Percentage Rate
cash flow
stock
35. Another term for budget
spending plan
budget
compounding interest rate
deductible
36. Spreading risk among many types of investments; one way to minimize risk
investing risk
capital loss
Temporary investment
diversification
37. A form of bankruptcy that allows you to erase most of your debt.
pay yourself first - P.Y.F.
chapter 7
mutual funds
bond
38. An electronic machine that bank customers and credit union members can use to withdraw cash and make other financial transactions.
ATM - Automatic Teller Machine
real estate
principal
variable expenses
39. Earning interest on interest.
stocks
chapter 7
periodic or occasional expenses
compounding interest rate
40. A formal contract to repay borrowed money with interest at fixed intervals
Rule of 72
Rule of 72
mutual fund
bond
41. Uncontrollable and unpredictable events that cause an investment to lose value
ATM - Automatic Teller Machine
bank
non-market risk
chapter 13
42. Regular and planned investments
Securities and Exchange Commission
systematic investing
capital loss
principal
43. The value of What is given up when you choose one option over another.
opportunity cost
Series EE Savings Bond
coverage limit
career
44. The setting aside of money for future use or other investments
mutual fund
options
financial advisers
pay yourself first - P.Y.F.
45. 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.
interest
company risk
spyware
time value of money
46. The right & not the obligation & to buy or sell commodities or stocks for a specific price on a specific date
options
systematic investing
US Treasury Notes
origination fee
47. Movement of money you receive and the money you spend
cash flow
opportunity cost
debt
annuities
48. 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.
checking account
Rule of 72
periodic or occasional expenses
grace period
49. The increase or decrease in the original purchase price of an investment over a period of time.
rate of return
annuities
Rule of 72
mutual funds
50. US treasury security that matures in 2 & 5 & or 10 years
Personal Identification Number - PIN
US Treasury Notes
put-and-take account
collectibles