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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 financial institution owned by its members that provides savings and checking accounts and other services to its membership at low fees.
well-known financial newspapers
credit union
Rule of 72
interest
2. The process of dealing with the chance of a potential personal or financial loss.
mutual fund
annuities
variable expenses
risk management
3. An amount that credit card companies can charge for the use of a credit card.
risk taker
speculative investments
dollar cost average
annual fee
4. Low-priced stocks of small companies that have no track record
time value of money
periodic or occasional expenses
penny stocks
coverage limit
5. The place where stocks are bought and sold.
stock market
social security tax
savings
US Treasury Notes
6. Brokers who provided little or no information to clients
discount brokers
ATM - Automatic Teller Machine
inflation
industry risk
7. The chance that an investment's value will decrease
APR - Average Percentage Rate
investing risk
Securities and Exchange Commission
compounding interest rate
8. Is a numerical rating - based on credit report information that represents a person's level of creditworthiness
credit score
well-known discount brokers
risk
investing risk
9. The chance that inflation will rise faster than the rate of return on an investment
market risk
opportunity cost
dollar cost average
interest-rate risk
10. A payroll deduction collected by employers by law and sent to the state government to support state services.
variable expenses
well-known discount brokers
state income tax
Rule of 72
11. A technique used for estimating the number of years required to double your money at a given rate
APR - Average Percentage Rate
Series I Savings Bond
Rule of 72
municipal bonds
12. Business Weekly & Forbes & Money
risk taker
tax deferred
municipal bonds
well-know financial magazines
13. A detailed record of your personal credit and financial transactions.
full-service broker
credit report
opportunity cost
over-the-limit fee
14. A detailed record of your personal credit and financial transactions.
debit card
credit report
credit limit
budget
15. Expenses that aren't paid every month and can be either fixed or variable.
company risk
periodic or occasional expenses
bond
savings
16. Investing with a series of regular payments; usually associated with life insurance companies
annuities
investing risk
financial pages
risk
17. A unit of ownership in a corporation
variable expenses
credit union
stocks
interest-rate risk
18. Things that add comfort and pleasure to your life but you can live without if you need to.
strategic investing
wants
company risk
market risk
19. Uncontrollable and unpredictable events that cause an investment to lose value
checking account
Series I Savings Bond
non-market risk
financial advisers
20. An amount that credit card companies can charge for the use of a credit card.
financial advisers
inflation
annual fee
risk taker
21. Pooling of money from many investors to buy a large & diverse selection of securities
mutual funds
grace period
financial pages
debit card
22. The credit union term for a checking account.
permanent investment
share draft account
US Treasury Notes
wants
23. Companies that provide extensive financial data to clients
mutual fund
investor services
investing risk
risk taker
24. Newspapers list of securities
Rule of 72
values
state income tax
financial pages
25. A form of bankruptcy that allows you to repay many of your debts over a period of time - usually no more than five years.
bond
ATM - Automatic Teller Machine
municipal bonds
chapter 13
26. Investing with a series of regular payments; usually associated with life insurance companies
stock
speculative investments
full-service broker
annuities
27. Associated with owning stock of similar groups of businesses
credit score
stock
phishing
industry risk
28. 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 score
options
spyware
well-known financial newspapers
29. Summary of a corporation's financial condition
annual report
mutual fund
interest-rate risk
non-market risk
30. Spreading risk among many types of investments; one way to minimize risk
risk
interest-rate risk
universal default
diversification
31. Property consisting of houses and land
debit card
real estate
principal
annuities
32. 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.
speculative investments
social security tax
industry risk
maturity date
33. A certificate documenting the shareholder's ownership in the corporation
well-know financial magazines
interest
systematic investing
stock
34. Reducing investment risk by putting money in several different types of investments.
credit union
diversification
real estate
well-known discount brokers
35. A fee charged to a borrower (especially for a mortgage loan) to cover the costs of initiating the loan.
credit score
Temporary investment
origination fee
bank
36. The date on which the borrowed money must be repaid
maturity date
financial advisers
risk taker
credit score
37. The setting aside of money for future use or other investments
principal
debt
interest
pay yourself first - P.Y.F.
38. Expenses that are not fixed.
variable expenses
permanent investment
interest
principal
39. Discount bonds; a bond purchased for less than the maturity value; example you buy a $50 bond for $25
credit report
origination fee
Series EE Savings Bond
mutual funds
40. Maximum amount of credit a lender will extend to a customer.
risk management
mutual funds
credit limit
penny stocks
41. The amount a corporation pays at a fixed amount when repaying a bond
interest
penny stocks
corporate bonds
corporate bonds
42. The willingness to give up something you want now in return for something better in the future.
market risk
debt
yield
delayed gratification
43. The increase or decrease in the original purchase price of an investment over a period of time.
credit report
Investing
spyware
rate of return
44. The credit union term for a savings account.
variable expenses
capital gain
share account
non-market risk
45. The credit union term for a savings account.
share account
US Treasury Bonds
origination fee
rate of return
46. A for-profit company that is owned by its stockholders and provides savings and checking accounts and other financial services to its customers.
bank
ATM - Automatic Teller Machine
well-known investor services
well-known discount brokers
47. Spreading risk among many types of investments; one way to minimize risk
strategic investing
collectibles
diversification
risk
48. 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.
checking account
savings account
well-known financial newspapers
periodic or occasional expenses
49. A goal to be achieved within the next three months.
short term goal
Securities and Exchange Commission
stocks
variable expenses
50. The probability that injury - damage - or loss will occur.
credit union
mutual funds
risk
social security tax