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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. Merrill Lynch & Fidelity Investments & American Express
well-know full-service brokers
real estate
investor services
APR - Average Percentage Rate
2. A detailed record of your personal credit and financial transactions.
principal
risk averse
annual report
credit report
3. A government sector that requires all public corporations to make annual reports available to their stockholders
non-market risk
Securities and Exchange Commission
discount brokers
Temporary investment
4. Another term for budget
satellite decisions
portfolio
discount brokers
spending plan
5. The setting aside of money for future use or other investments
pay yourself first - P.Y.F.
Rule of 72
corporate bonds
stock
6. Debt obligations of state or local governments
delayed gratification
municipal bonds
delayed gratification
financial advisers
7. A fee charged to a borrower (especially for a mortgage loan) to cover the costs of initiating the loan.
spending plan
credit limit
inflation
origination fee
8. Earning interest on interest.
options
maturity date
compounding interest rate
Temporary investment
9. Spreading risk among many types of investments; one way to minimize risk
diversification
bankruptcy
inflation
well-know financial magazines
10. 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-known investor services
deductible
political risk
company risk
11. The amount of money someone is willing to loan you.
principal
portfolio
spending plan
initial investing
12. Regular and planned investments
credit history
systematic investing
Temporary investment
diversification
13. Associated with owning stock of only one company
company risk
investor services
APR - Average Percentage Rate
corporate bonds
14. The unique passcode number you use to get access to your savings and/or checking account
Personal Identification Number - PIN
Series EE Savings Bond
diversification
state income tax
15. The belief - qualities - or standards that you consider important or desirable.
stocks
Series EE Savings Bond
values
coverage limit
16. A unit of ownership in a corporation
company risk
initial investing
stocks
futures
17. The right & not the obligation & to buy or sell commodities or stocks for a specific price on a specific date
deductible
dividend
non-market risk
options
18. A chosen pursuit - profession - or occupation
budget
collectibles
career
credit report
19. The maximum amount an insurance company will pay if you file a claim.
coverage limit
wants
credit history
real estate
20. Maximum amount of credit a lender will extend to a customer.
credit limit
risk
annual report
grace period
21. The date on which the borrowed money must be repaid
non-market risk
maturity date
cash flow
US Treasury Bonds
22. Money used for short-term needs like emergencies; advisers recommend three to six months' net pay for set aside for this
put-and-take account
share account
financial advisers
risk
23. 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.
systematic investing
APR - Average Percentage Rate
Rule of 72
stock market
24. An electronic machine that bank customers and credit union members can use to withdraw cash and make other financial transactions.
grace period
mutual funds
ATM - Automatic Teller Machine
maturity date
25. The chance that an investment's value will decrease
investing risk
strategic investing
opportunity cost
rate of return
26. A form of bankruptcy that allows you to erase most of your debt.
variable expenses
ATM - Automatic Teller Machine
chapter 7
phishing
27. 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.
company risk
APR - Average Percentage Rate
mutual fund
financial pages
28. A bank account against which the depositor can draw checks payable on demand.
well-known financial newspapers
checking account
values
Series I Savings Bond
29. Fee on credit card for making charges above your credit limit.
over-the-limit fee
options
Rule of 72
initial investing
30. The use of long-term savings to earn a financial return
coverage limit
Investing
diversification
well-know full-service brokers
31. An amount that credit card companies can charge for the use of a credit card.
maturity date
annual fee
corporate bonds
well-known investor services
32. Things that add comfort and pleasure to your life but you can live without if you need to.
credit limit
wants
principal
speculative investments
33. Investment choices that will be re-evaluated within a year or less
Temporary investment
pay yourself first - P.Y.F.
spyware
bank
34. Brokers who provide clients with analysis and opinions
full-service broker
chapter 7
US Treasury Notes
periodic or occasional expenses
35. Charles Schwab & TD Ameritrade & E*TRADE
capital gain
risk management
well-known discount brokers
credit union
36. Coins & art & memorabilia or other items that are popular from time to time
collectibles
interest
risk
market risk
37. A fee charged to a borrower (especially for a mortgage loan) to cover the costs of initiating the loan.
time value of money
origination fee
annuities
ATM - Automatic Teller Machine
38. A payroll deduction collected by employers by law and sent to the state government to support state services.
yield
options
state income tax
stocks
39. The profit from an investment.
Series I Savings Bond
interest
credit limit
yield
40. The credit union term for a savings account.
political risk
debt
well-know financial magazines
share account
41. 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.
Securities and Exchange Commission
savings account
yield
permanent investment
42. A term that describes investments on which earnings are not taxed until retirement
capital loss
tax deferred
credit score
compounding interest rate
43. Standard and Poor's and Moody's
credit score
options
speculative investments
well-known investor services
44. Expenses that are not fixed.
yield
options
well-know full-service brokers
variable expenses
45. A for-profit company that is owned by its stockholders and provides savings and checking accounts and other financial services to its customers.
bank
opportunity cost
share account
put-and-take account
46. The chance that an investment's value will decrease
investing risk
compounding interest rate
well-known discount brokers
discount brokers
47. The use of long-term savings to earn a financial return
permanent investment
full-service broker
bankruptcy
Investing
48. Coins & art & memorabilia or other items that are popular from time to time
tax deferred
Securities and Exchange Commission
dividend
collectibles
49. A form of bankruptcy that allows you to erase most of your debt.
share draft account
Rule of 72
chapter 7
APR - Average Percentage Rate
50. US treasury security that matures from a few days to one year
discount brokers
US Treasury Bills
portfolio
interest-rate risk