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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. People trained to give investment advise based on your goals & age & lifestyle & etc
financial advisers
futures
discount brokers
state income tax
2. Investment choices that will be held for long periods
risk averse
permanent investment
satellite decisions
capital gain
3. Is a numerical rating - based on credit report information that represents a person's level of creditworthiness
investing risk
credit score
well-know financial magazines
cash flow
4. Investment choices that will be re-evaluated within a year or less
municipal bonds
Temporary investment
career
savings
5. Movement of money you receive and the money you spend
inflation
cash flow
municipal bonds
industry risk
6. Property consisting of houses and land
real estate
bond
diversification
ATM - Automatic Teller Machine
7. Property consisting of houses and land
Securities and Exchange Commission
real estate
yield
inflation
8. Associated with owning stock of similar groups of businesses
well-known financial newspapers
Securities and Exchange Commission
corporate bonds
industry risk
9. The value of What is given up when you choose one option over another.
opportunity cost
Series I Savings Bond
Series I Savings Bond
US Treasury Bills
10. The belief - qualities - or standards that you consider important or desirable.
stock
credit
interest-rate risk
values
11. The chance that inflation will rise faster than the rate of return on an investment
interest-rate risk
ATM - Automatic Teller Machine
delayed gratification
chapter 13
12. Low-priced stocks of small companies that have no track record
grace period
credit
penny stocks
political risk
13. A unit of ownership in a corporation
put-and-take account
stock market
well-know financial magazines
stocks
14. Newspapers list of securities
financial pages
debt
annual report
debit card
15. 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 history
savings
speculative investments
16. The amount of a loss you must pay out of your own pocket before the insurance company will step in and pay the rest.
well-know financial magazines
speculative investments
Investing
deductible
17. US treasury security that matures from a few days to one year
bank
US Treasury Bills
interest
cash flow
18. An amount that credit card companies can charge for the use of a credit card.
bank
annual fee
satellite decisions
diversification
19. 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.'
time value of money
corporate bonds
debit card
US Treasury Bills
20. Bold and high-risk investments
coverage limit
speculative investments
credit
cash flow
21. 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.
mutual fund
Temporary investment
state income tax
debt
22. US treasury security that matures in 2 & 5 & or 10 years
dollar cost average
tax deferred
US Treasury Notes
spyware
23. A general and progressive increase in prices
industry risk
Securities and Exchange Commission
inflation
dollar cost average
24. The right & not the obligation & to buy or sell commodities or stocks for a specific price on a specific date
cash flow
credit union
bond
options
25. A for-profit company that is owned by its stockholders and provides savings and checking accounts and other financial services to its customers.
savings
bank
well-known financial newspapers
credit union
26. The willingness to give up something you want now in return for something better in the future.
delayed gratification
risk averse
mutual funds
APR - Average Percentage Rate
27. The idea that money today is worth more than the same amount of money in the future due to its potential earning capacity.
chapter 13
time value of money
Series I Savings Bond
origination fee
28. 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
strategic investing
US Treasury Bonds
29. Fee on credit card for making charges above your credit limit.
spending plan
over-the-limit fee
Securities and Exchange Commission
principal
30. Investing with a series of regular payments; usually associated with life insurance companies
annuities
debit card
dividend
spyware
31. A bank account against which the depositor can draw checks payable on demand.
capital gain
checking account
debit card
well-know full-service brokers
32. A certificate documenting the shareholder's ownership in the corporation
stock market
spyware
compounding interest rate
stock
33. 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.
savings
Series I Savings Bond
credit limit
spyware
34. Companies that provide extensive financial data to clients
full-service broker
bank
share draft account
investor services
35. Low-priced stocks of small companies that have no track record
spending plan
penny stocks
well-known financial newspapers
principal
36. Management of investment alternatives to maximize the growth of your portfolio
Temporary investment
bond
strategic investing
futures
37. 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.
origination fee
US Treasury Bills
risk
APR - Average Percentage Rate
38. A financial institution owned by its members that provides savings and checking accounts and other services to its membership at low fees.
diversification
principal
credit union
chapter 13
39. The portion of the profits paid to the shareholders of a company.
dividend
portfolio
US Treasury Bills
credit
40. A summary of a person's borrowing and repayment history.
credit history
universal default
annual fee
time value of money
41. The credit union term for a checking account.
bond
mutual funds
share draft account
credit limit
42. Charles Schwab & TD Ameritrade & E*TRADE
well-known discount brokers
values
risk management
US Treasury Bonds
43. Brokers who provide clients with analysis and opinions
cash flow
pay yourself first - P.Y.F.
strategic investing
full-service broker
44. On a credit card - the length of time you have before you start accumulating interest on an unpaid balance.
interest
grace period
principal
political risk
45. Uncontrollable and unpredictable events that cause an investment to lose value
credit limit
stock market
non-market risk
career
46. Debt obligations of corporations
political risk
values
corporate bonds
well-known financial newspapers
47. A form of bankruptcy that allows you to erase most of your debt.
opportunity cost
stock market
chapter 7
well-known investor services
48. The idea that money today is worth more than the same amount of money in the future due to its potential earning capacity.
compounding interest rate
full-service broker
time value of money
real estate
49. The probability that injury - damage - or loss will occur.
satellite decisions
risk
annual fee
maturity date
50. The increase or decrease in the original purchase price of an investment over a period of time.
diversification
state income tax
rate of return
variable expenses