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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. Discount bonds; a bond purchased for less than the maturity value; example you buy a $50 bond for $25
maturity date
diversification
Series EE Savings Bond
Rule of 72
2. A bank account against which the depositor can draw checks payable on demand.
debt
spyware
savings
checking account
3. Regular and planned investments
Securities and Exchange Commission
systematic investing
municipal bonds
budget
4. The date on which the borrowed money must be repaid
initial investing
maturity date
credit score
investing risk
5. Pooling of money from many investors to buy a large & diverse selection of securities
initial investing
mutual funds
well-known investor services
short term goal
6. Things that add comfort and pleasure to your life but you can live without if you need to.
wants
coverage limit
risk management
ATM - Automatic Teller Machine
7. A unit of ownership in a corporation
budget
universal default
stocks
full-service broker
8. Pooling of money from many investors to buy a large & diverse selection of securities
rate of return
mutual funds
well-know financial magazines
Rule of 72
9. The right & not the obligation & to buy or sell commodities or stocks for a specific price on a specific date
credit limit
options
time value of money
interest-rate risk
10. Brokers who provide clients with analysis and opinions
career
satellite decisions
risk averse
full-service broker
11. Expenses that aren't paid every month and can be either fixed or variable.
principal
periodic or occasional expenses
chapter 13
market risk
12. The chance that an investment's value will decrease
investing risk
speculative investments
spending plan
corporate bonds
13. The right & not the obligation & to buy or sell commodities or stocks for a specific price on a specific date
risk
options
compounding interest rate
short term goal
14. An electronic machine that bank customers and credit union members can use to withdraw cash and make other financial transactions.
diversification
investor services
stocks
ATM - Automatic Teller Machine
15. Investment choices that will be re-evaluated within a year or less
Investing
deductible
Temporary investment
yield
16. Investing with a series of regular payments; usually associated with life insurance companies
stock market
portfolio
annuities
universal default
17. Conservative investing; used when you have 'excess' savings
full-service broker
diversification
initial investing
delayed gratification
18. Regular and planned investments
debt
deductible
values
systematic investing
19. Losses in an investment as a result of the business cycle
career
portfolio
risk averse
market risk
20. An amount that credit card companies can charge for the use of a credit card.
bond
put-and-take account
annual fee
bond
21. 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.
diversification
universal default
pay yourself first - P.Y.F.
APR - Average Percentage Rate
22. Standard and Poor's and Moody's
US Treasury Notes
well-known investor services
credit history
real estate
23. The process of dealing with the chance of a potential personal or financial loss.
risk management
Securities and Exchange Commission
spyware
real estate
24. A unit of ownership in a corporation
share draft account
stocks
social security tax
stock
25. A bank account against which the depositor can draw checks payable on demand.
checking account
risk management
credit limit
pay yourself first - P.Y.F.
26. 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.
company risk
corporate bonds
spyware
political risk
27. Fee on credit card for making charges above your credit limit.
market risk
periodic or occasional expenses
over-the-limit fee
penny stocks
28. The increase or decrease in the original purchase price of an investment over a period of time.
periodic or occasional expenses
rate of return
well-know financial magazines
yield
29. Companies that provide extensive financial data to clients
permanent investment
strategic investing
collectibles
investor services
30. A legal process to get out of debt when you can no longer make all your required payments.
systematic investing
yield
Investing
bankruptcy
31. Spreading risk among many types of investments; one way to minimize risk
bankruptcy
bond
satellite decisions
diversification
32. The difference between a higher selling price and a lower purchase price - resulting in a financial gain for the seller
capital gain
well-know financial magazines
debit card
US Treasury Notes
33. A technique used for estimating the number of years required to double your money at a given rate
debit card
principal
real estate
Rule of 72
34. Business Weekly & Forbes & Money
futures
Rule of 72
pay yourself first - P.Y.F.
well-know financial magazines
35. The unique passcode number you use to get access to your savings and/or checking account
US Treasury Notes
Personal Identification Number - PIN
Rule of 72
full-service broker
36. Bold and high-risk investments
yield
well-know full-service brokers
speculative investments
financial advisers
37. Standard and Poor's and Moody's
principal
well-known investor services
credit history
portfolio
38. A for-profit company that is owned by its stockholders and provides savings and checking accounts and other financial services to its customers.
annual fee
bank
career
Rule of 72
39. The increase or decrease in the original purchase price of an investment over a period of time.
bank
career
rate of return
stocks
40. Expenses that are not fixed.
variable expenses
rate of return
well-know full-service brokers
universal default
41. A general and progressive increase in prices
bond
speculative investments
stock
inflation
42. A detailed record of your personal credit and financial transactions.
credit report
discount brokers
grace period
credit history
43. The setting aside of money for future use or other investments
pay yourself first - P.Y.F.
dollar cost average
share draft account
principal
44. Summary of a corporation's financial condition
well-known financial newspapers
variable expenses
satellite decisions
annual report
45. Management of investment alternatives to maximize the growth of your portfolio
strategic investing
stock
share account
diversification
46. A summary of a person's borrowing and repayment history.
budget
periodic or occasional expenses
collectibles
credit history
47. A certificate documenting the shareholder's ownership in the corporation
Series EE Savings Bond
chapter 13
stock
principal
48. Merrill Lynch & Fidelity Investments & American Express
risk taker
well-know full-service brokers
principal
principal
49. Collection of investments
discount brokers
inflation
deductible
portfolio
50. Another term for budget
spending plan
pay yourself first - P.Y.F.
collectibles
credit history