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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. US treasury security that matures from a few days to one year
US Treasury Bills
social security tax
interest
corporate bonds
2. The difference between a higher selling price and a lower purchase price - resulting in a financial gain for the seller
capital gain
market risk
put-and-take account
non-market risk
3. Actions that the government might take that would reduce the value of an investment
penny stocks
political risk
ATM - Automatic Teller Machine
checking account
4. The maximum amount an insurance company will pay if you file a claim.
variable expenses
coverage limit
collectibles
spyware
5. The difference between a higher selling price and a lower purchase price - resulting in a financial gain for the seller
risk
company risk
well-known discount brokers
capital gain
6. People trained to give investment advise based on your goals & age & lifestyle & etc
social security tax
cash flow
APR - Average Percentage Rate
financial advisers
7. Wall Street Journal and Barron's
well-known financial newspapers
savings
compounding interest rate
bond
8. The credit union term for a savings account.
share account
periodic or occasional expenses
maturity date
inflation
9. An amount that credit card companies can charge for the use of a credit card.
mutual funds
annual fee
credit limit
mutual funds
10. A technique to gain personal information for the purpose of identity theft - usually by means of fraudulent e-mail or pop-up messages.
well-known financial newspapers
risk taker
Series EE Savings Bond
phishing
11. Summary of a corporation's financial condition
annual report
credit union
wants
Series I Savings Bond
12. The setting aside of money for future use or other investments
stock market
Investing
mutual funds
pay yourself first - P.Y.F.
13. The probability that injury - damage - or loss will occur.
futures
non-market risk
grace period
risk
14. Investors who are afraid to make investments
maturity date
risk management
risk averse
credit limit
15. A legal process to get out of debt when you can no longer make all your required payments.
bankruptcy
stock
tax deferred
checking account
16. The difference between a lower selling price and a higher purchase price resulting in a financial loss for the seller
debt
tax deferred
corporate bonds
capital loss
17. A chosen pursuit - profession - or occupation
strategic investing
career
delayed gratification
US Treasury Notes
18. Fee on credit card for making charges above your credit limit.
Temporary investment
over-the-limit fee
market risk
debit card
19. A bank account against which the depositor can draw checks payable on demand.
penny stocks
over-the-limit fee
checking account
risk management
20. Spreading risk among many types of investments; one way to minimize risk
put-and-take account
Investing
credit union
diversification
21. The idea that money today is worth more than the same amount of money in the future due to its potential earning capacity.
Securities and Exchange Commission
time value of money
mutual fund
chapter 13
22. The increase or decrease in the original purchase price of an investment over a period of time.
share account
well-known investor services
bond
rate of return
23. Investment choices that will be held for long periods
stock market
permanent investment
short term goal
principal
24. Collection of investments
portfolio
social security tax
US Treasury Notes
annuities
25. 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.
opportunity cost
cash flow
mutual fund
over-the-limit fee
26. The unique passcode number you use to get access to your savings and/or checking account
collectibles
origination fee
industry risk
Personal Identification Number - PIN
27. The entire amount of money you owe to lenders
wants
debt
annual fee
US Treasury Bills
28. A unit of ownership in a corporation
bank
stocks
satellite decisions
maturity date
29. Management of investment alternatives to maximize the growth of your portfolio
initial investing
strategic investing
Series I Savings Bond
US Treasury Bonds
30. 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.
principal
phishing
universal default
Series I Savings Bond
31. A technique to gain personal information for the purpose of identity theft - usually by means of fraudulent e-mail or pop-up messages.
risk
speculative investments
phishing
checking account
32. Movement of money you receive and the money you spend
cash flow
share account
put-and-take account
credit
33. Brokers who provided little or no information to clients
discount brokers
chapter 13
mutual funds
annual fee
34. Amount of money that is set aside for future purchases
savings
capital gain
dividend
political risk
35. Companies that provide extensive financial data to clients
diversification
investor services
dividend
wants
36. The right & not the obligation & to buy or sell commodities or stocks for a specific price on a specific date
stock market
well-known investor services
options
financial pages
37. Management of investment alternatives to maximize the growth of your portfolio
penny stocks
time value of money
strategic investing
risk
38. Smaller decisions that can result from a major decision.
strategic investing
initial investing
well-know full-service brokers
satellite decisions
39. Low-priced stocks of small companies that have no track record
stock
penny stocks
Securities and Exchange Commission
well-known financial newspapers
40. Bonds designed for investors wanting to protect again inflation losses
tax deferred
US Treasury Bills
put-and-take account
Series I Savings Bond
41. Bold and high-risk investments
political risk
grace period
speculative investments
ATM - Automatic Teller Machine
42. 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.
risk averse
collectibles
spyware
risk taker
43. Expenses that are not fixed.
state income tax
Securities and Exchange Commission
opportunity cost
variable expenses
44. Reducing investment risk by putting money in several different types of investments.
Rule of 72
debt
principal
diversification
45. Debt obligations of state or local governments
municipal bonds
financial pages
periodic or occasional expenses
short term goal
46. The chance that an investment's value will decrease
dollar cost average
Securities and Exchange Commission
investing risk
savings account
47. An amount that credit card companies can charge for the use of a credit card.
credit union
annual fee
real estate
career
48. A payroll deduction collected by employers by law and sent to the state government to support state services.
variable expenses
strategic investing
state income tax
Personal Identification Number - PIN
49. The amount of a loss you must pay out of your own pocket before the insurance company will step in and pay the rest.
debt
corporate bonds
deductible
penny stocks
50. Regular and planned investments
systematic investing
risk
company risk
wants