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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. Low-priced stocks of small companies that have no track record
mutual funds
permanent investment
collectibles
penny stocks
2. The difference between a higher selling price and a lower purchase price - resulting in a financial gain for the seller
industry risk
systematic investing
capital gain
spending plan
3. The unique passcode number you use to get access to your savings and/or checking account
industry risk
US Treasury Bills
Personal Identification Number - PIN
budget
4. The process of dealing with the chance of a potential personal or financial loss.
budget
risk management
annual fee
stocks
5. A financial institution owned by its members that provides savings and checking accounts and other services to its membership at low fees.
pay yourself first - P.Y.F.
Series I Savings Bond
credit union
wants
6. Debt obligations of state or local governments
bank
municipal bonds
rate of return
non-market risk
7. 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.
credit union
political risk
savings account
credit score
8. Investment choices that will be held for long periods
mutual funds
permanent investment
risk taker
rate of return
9. The credit union term for a checking account.
deductible
capital gain
capital loss
share draft account
10. The practice of investing a fixed amount into the same investment at regular intervals - regardless of what the stock market is doing.
dollar cost average
diversification
share draft account
career
11. A technique to gain personal information for the purpose of identity theft - usually by means of fraudulent e-mail or pop-up messages.
Rule of 72
options
social security tax
phishing
12. Movement of money you receive and the money you spend
Investing
state income tax
cash flow
systematic investing
13. The process of dealing with the chance of a potential personal or financial loss.
values
risk
grace period
risk management
14. The use of long-term savings to earn a financial return
dollar cost average
portfolio
compounding interest rate
Investing
15. Fee on credit card for making charges above your credit limit.
Rule of 72
tax deferred
delayed gratification
over-the-limit fee
16. The increase or decrease in the original purchase price of an investment over a period of time.
time value of money
satellite decisions
budget
rate of return
17. Charles Schwab & TD Ameritrade & E*TRADE
speculative investments
chapter 13
futures
well-known discount brokers
18. The maximum amount an insurance company will pay if you file a claim.
share account
US Treasury Notes
short term goal
coverage limit
19. A form of bankruptcy that allows you to repay many of your debts over a period of time - usually no more than five years.
mutual fund
chapter 13
financial advisers
municipal bonds
20. A technique to gain personal information for the purpose of identity theft - usually by means of fraudulent e-mail or pop-up messages.
inflation
industry risk
savings account
phishing
21. A government sector that requires all public corporations to make annual reports available to their stockholders
risk management
Securities and Exchange Commission
futures
periodic or occasional expenses
22. The practice of investing a fixed amount into the same investment at regular intervals - regardless of what the stock market is doing.
well-known financial newspapers
dollar cost average
Securities and Exchange Commission
corporate bonds
23. Investors who are afraid to make investments
origination fee
put-and-take account
permanent investment
risk averse
24. Contacts to buy and sell commodities or stocks for a specific price on a specific date
spyware
opportunity cost
futures
coverage limit
25. The chance that an investment's value will decrease
APR - Average Percentage Rate
penny stocks
investing risk
risk
26. 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.
mutual fund
universal default
APR - Average Percentage Rate
universal default
27. Amount of money that is set aside for future purchases
savings
put-and-take account
phishing
collectibles
28. A general and progressive increase in prices
corporate bonds
systematic investing
compounding interest rate
inflation
29. The belief - qualities - or standards that you consider important or desirable.
values
stocks
diversification
company risk
30. A formal contract to repay borrowed money with interest at fixed intervals
wants
bond
Investing
interest
31. Bold and high-risk investments
dividend
company risk
speculative investments
wants
32. Debt obligations of corporations
mutual fund
bankruptcy
market risk
corporate bonds
33. Actions that the government might take that would reduce the value of an investment
well-know full-service brokers
investor services
political risk
APR - Average Percentage Rate
34. Discount bonds; a bond purchased for less than the maturity value; example you buy a $50 bond for $25
risk management
financial advisers
Series EE Savings Bond
principal
35. The place where stocks are bought and sold.
checking account
stock market
Series I Savings Bond
chapter 13
36. On a credit card - the length of time you have before you start accumulating interest on an unpaid balance.
investor services
compounding interest rate
debit card
grace period
37. Another term for budget
risk averse
municipal bonds
spending plan
capital loss
38. Business Weekly & Forbes & Money
compounding interest rate
well-know financial magazines
maturity date
capital loss
39. Collection of investments
debit card
share account
portfolio
bond
40. The difference between a higher selling price and a lower purchase price - resulting in a financial gain for the seller
real estate
capital gain
well-known investor services
credit
41. Investors who take to take chances
collectibles
chapter 13
annuities
risk taker
42. Bold and high-risk investments
speculative investments
interest
bankruptcy
credit report
43. A general and progressive increase in prices
inflation
state income tax
pay yourself first - P.Y.F.
origination fee
44. People trained to give investment advise based on your goals & age & lifestyle & etc
phishing
satellite decisions
full-service broker
financial advisers
45. A detailed record of your personal credit and financial transactions.
credit report
options
stock market
risk taker
46. Charles Schwab & TD Ameritrade & E*TRADE
chapter 13
variable expenses
well-known discount brokers
credit score
47. Expenses that are not fixed.
debt
variable expenses
satellite decisions
rate of return
48. Investors who take to take chances
risk taker
financial pages
Series I Savings Bond
corporate bonds
49. Earning interest on interest.
dollar cost average
compounding interest rate
delayed gratification
well-known investor services
50. A fee charged to a borrower (especially for a mortgage loan) to cover the costs of initiating the loan.
origination fee
chapter 7
grace period
budget