SUBJECTS
|
BROWSE
|
CAREER CENTER
|
POPULAR
|
JOIN
|
LOGIN
Business Skills
|
Soft Skills
|
Basic Literacy
|
Certifications
About
|
Help
|
Privacy
|
Terms
|
Email
Search
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 chosen pursuit - profession - or occupation
investing risk
market risk
career
well-known investor services
2. A detailed record of your personal credit and financial transactions.
wants
credit report
Rule of 72
portfolio
3. The credit union term for a savings account.
values
municipal bonds
checking account
share account
4. Brokers who provide clients with analysis and opinions
interest-rate risk
full-service broker
credit
annual fee
5. A spending plan for managing money during a given period of time.
budget
corporate bonds
chapter 7
initial investing
6. 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.
municipal bonds
yield
spyware
state income tax
7. A technique used for estimating the number of years required to double your money at a given rate
Rule of 72
share draft account
mutual fund
strategic investing
8. A technique to gain personal information for the purpose of identity theft - usually by means of fraudulent e-mail or pop-up messages.
delayed gratification
well-known investor services
risk
phishing
9. A general and progressive increase in prices
inflation
Series EE Savings Bond
capital gain
bank
10. Things that add comfort and pleasure to your life but you can live without if you need to.
phishing
checking account
ATM - Automatic Teller Machine
wants
11. 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.
Temporary investment
savings account
penny stocks
satellite decisions
12. On a credit card - the length of time you have before you start accumulating interest on an unpaid balance.
speculative investments
grace period
rate of return
stock
13. Summary of a corporation's financial condition
rate of return
annual report
financial pages
credit union
14. The difference between a lower selling price and a higher purchase price resulting in a financial loss for the seller
bond
tax deferred
capital loss
mutual funds
15. The process of dealing with the chance of a potential personal or financial loss.
real estate
risk management
Rule of 72
universal default
16. A goal to be achieved within the next three months.
credit history
short term goal
universal default
real estate
17. The practice of investing a fixed amount into the same investment at regular intervals - regardless of what the stock market is doing.
grace period
cash flow
dollar cost average
collectibles
18. Money used for short-term needs like emergencies; advisers recommend three to six months' net pay for set aside for this
values
put-and-take account
cash flow
bond
19. Maximum amount of credit a lender will extend to a customer.
periodic or occasional expenses
checking account
diversification
credit limit
20. 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.
corporate bonds
Rule of 72
time value of money
risk averse
21. The difference between a higher selling price and a lower purchase price - resulting in a financial gain for the seller
capital gain
full-service broker
risk averse
political risk
22. Companies that provide extensive financial data to clients
investor services
opportunity cost
Securities and Exchange Commission
credit
23. The amount of a loss you must pay out of your own pocket before the insurance company will step in and pay the rest.
bankruptcy
annuities
share account
deductible
24. The amount of a loss you must pay out of your own pocket before the insurance company will step in and pay the rest.
Series I Savings Bond
deductible
coverage limit
initial investing
25. Things that add comfort and pleasure to your life but you can live without if you need to.
well-know financial magazines
wants
values
yield
26. A payroll deduction collected by employers by law and sent to the state government to support state services.
market risk
options
annual fee
state income tax
27. Spreading risk among many types of investments; one way to minimize risk
diversification
credit report
capital loss
corporate bonds
28. A spending plan for managing money during a given period of time.
credit limit
diversification
budget
delayed gratification
29. The idea that money today is worth more than the same amount of money in the future due to its potential earning capacity.
share draft account
investing risk
coverage limit
time value of money
30. Discount bonds; a bond purchased for less than the maturity value; example you buy a $50 bond for $25
inflation
diversification
credit limit
Series EE Savings Bond
31. Bold and high-risk investments
financial advisers
checking account
Series I Savings Bond
speculative investments
32. The portion of the profits paid to the shareholders of a company.
cash flow
market risk
dividend
strategic investing
33. The right & not the obligation & to buy or sell commodities or stocks for a specific price on a specific date
share draft account
Securities and Exchange Commission
options
savings account
34. The chance that an investment's value will decrease
investing risk
APR - Average Percentage Rate
deductible
diversification
35. Is a numerical rating - based on credit report information that represents a person's level of creditworthiness
dividend
credit score
origination fee
satellite decisions
36. An electronic machine that bank customers and credit union members can use to withdraw cash and make other financial transactions.
checking account
social security tax
ATM - Automatic Teller Machine
municipal bonds
37. An electronic machine that bank customers and credit union members can use to withdraw cash and make other financial transactions.
corporate bonds
ATM - Automatic Teller Machine
credit score
mutual fund
38. Actions that the government might take that would reduce the value of an investment
US Treasury Bills
political risk
full-service broker
ATM - Automatic Teller Machine
39. Reducing investment risk by putting money in several different types of investments.
Rule of 72
diversification
credit history
career
40. US treasury security that matures from a few days to one year
pay yourself first - P.Y.F.
career
US Treasury Bills
credit report
41. Associated with owning stock of similar groups of businesses
stock
industry risk
compounding interest rate
Securities and Exchange Commission
42. The setting aside of money for future use or other investments
principal
maturity date
discount brokers
pay yourself first - P.Y.F.
43. Smaller decisions that can result from a major decision.
ATM - Automatic Teller Machine
satellite decisions
periodic or occasional expenses
interest-rate risk
44. Investment choices that will be re-evaluated within a year or less
US Treasury Bills
risk
Temporary investment
values
45. The chance that an investment's value will decrease
bond
investing risk
Investing
credit score
46. Maximum amount of credit a lender will extend to a customer.
initial investing
risk
stock market
credit limit
47. Conservative investing; used when you have 'excess' savings
interest-rate risk
initial investing
industry risk
investing risk
48. Debt obligations of state or local governments
Series EE Savings Bond
principal
dividend
municipal bonds
49. Charles Schwab & TD Ameritrade & E*TRADE
Rule of 72
budget
financial advisers
well-known discount brokers
50. Expenses that are not fixed.
state income tax
municipal bonds
checking account
variable expenses