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. The right & not the obligation & to buy or sell commodities or stocks for a specific price on a specific date
coverage limit
inflation
options
full-service broker
2. Earning interest on interest.
market risk
short term goal
compounding interest rate
diversification
3. The process of dealing with the chance of a potential personal or financial loss.
real estate
options
financial advisers
risk management
4. Losses in an investment as a result of the business cycle
principal
collectibles
market risk
APR - Average Percentage Rate
5. Is a numerical rating - based on credit report information that represents a person's level of creditworthiness
diversification
US Treasury Bonds
APR - Average Percentage Rate
credit score
6. The willingness to give up something you want now in return for something better in the future.
delayed gratification
US Treasury Bonds
chapter 7
bond
7. Movement of money you receive and the money you spend
yield
pay yourself first - P.Y.F.
cash flow
credit history
8. Investment choices that will be re-evaluated within a year or less
opportunity cost
well-known discount brokers
spyware
Temporary investment
9. Is a numerical rating - based on credit report information that represents a person's level of creditworthiness
ATM - Automatic Teller Machine
well-know financial magazines
credit score
share draft account
10. The maximum amount an insurance company will pay if you file a claim.
universal default
financial pages
coverage limit
portfolio
11. Another term for budget
annuities
spending plan
credit history
market risk
12. Contacts to buy and sell commodities or stocks for a specific price on a specific date
mutual fund
futures
ATM - Automatic Teller Machine
short term goal
13. A form of bankruptcy that allows you to erase most of your debt.
risk taker
penny stocks
chapter 7
coverage limit
14. 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.
APR - Average Percentage Rate
dollar cost average
futures
Investing
15. A technique to gain personal information for the purpose of identity theft - usually by means of fraudulent e-mail or pop-up messages.
origination fee
permanent investment
phishing
coverage limit
16. Brokers who provide clients with analysis and opinions
penny stocks
US Treasury Bills
full-service broker
risk
17. The value of What is given up when you choose one option over another.
well-known discount brokers
stocks
futures
opportunity cost
18. A government sector that requires all public corporations to make annual reports available to their stockholders
investor services
periodic or occasional expenses
financial pages
Securities and Exchange Commission
19. A formal contract to repay borrowed money with interest at fixed intervals
real estate
company risk
investing risk
bond
20. Spreading risk among many types of investments; one way to minimize risk
APR - Average Percentage Rate
diversification
futures
Securities and Exchange Commission
21. 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.
satellite decisions
portfolio
corporate bonds
mutual fund
22. The profit from an investment.
APR - Average Percentage Rate
yield
variable expenses
risk averse
23. A legal process to get out of debt when you can no longer make all your required payments.
pay yourself first - P.Y.F.
bankruptcy
credit history
speculative investments
24. A formal contract to repay borrowed money with interest at fixed intervals
state income tax
well-know full-service brokers
bond
Series I Savings Bond
25. Losses in an investment as a result of the business cycle
market risk
values
well-known financial newspapers
well-known investor services
26. 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.
Investing
Rule of 72
variable expenses
diversification
27. An amount of money that is loaned on trust with the expectation that it will be repaid at a later date.
municipal bonds
annuities
Temporary investment
credit
28. Expenses that are not fixed.
variable expenses
career
market risk
Rule of 72
29. The use of long-term savings to earn a financial return
Investing
market risk
US Treasury Notes
systematic investing
30. A for-profit company that is owned by its stockholders and provides savings and checking accounts and other financial services to its customers.
speculative investments
financial advisers
bank
collectibles
31. Merrill Lynch & Fidelity Investments & American Express
portfolio
well-know full-service brokers
investor services
real estate
32. US treasury security that matures in 30 years
wants
ATM - Automatic Teller Machine
US Treasury Bonds
delayed gratification
33. Regular and planned investments
risk averse
delayed gratification
savings
systematic investing
34. On a credit card - the length of time you have before you start accumulating interest on an unpaid balance.
APR - Average Percentage Rate
Investing
collectibles
grace period
35. Brokers who provided little or no information to clients
credit
periodic or occasional expenses
discount brokers
APR - Average Percentage Rate
36. The place where stocks are bought and sold.
stock market
diversification
well-know full-service brokers
APR - Average Percentage Rate
37. Conservative investing; used when you have 'excess' savings
initial investing
phishing
risk taker
options
38. Discount bonds; a bond purchased for less than the maturity value; example you buy a $50 bond for $25
well-know financial magazines
credit limit
APR - Average Percentage Rate
Series EE Savings Bond
39. The amount of a loss you must pay out of your own pocket before the insurance company will step in and pay the rest.
grace period
strategic investing
bond
deductible
40. A financial institution owned by its members that provides savings and checking accounts and other services to its membership at low fees.
delayed gratification
maturity date
credit union
collectibles
41. Spreading risk among many types of investments; one way to minimize risk
share account
US Treasury Bills
diversification
well-known discount brokers
42. Summary of a corporation's financial condition
Investing
options
spending plan
annual report
43. Maximum amount of credit a lender will extend to a customer.
credit limit
chapter 7
deductible
non-market risk
44. The belief - qualities - or standards that you consider important or desirable.
universal default
values
interest-rate risk
credit
45. A term that describes investments on which earnings are not taxed until retirement
annual report
debit card
career
tax deferred
46. Management of investment alternatives to maximize the growth of your portfolio
periodic or occasional expenses
dividend
satellite decisions
strategic investing
47. The unique passcode number you use to get access to your savings and/or checking account
social security tax
options
savings
Personal Identification Number - PIN
48. A spending plan for managing money during a given period of time.
real estate
financial pages
budget
US Treasury Bonds
49. The chance that inflation will rise faster than the rate of return on an investment
interest-rate risk
market risk
company risk
social security tax
50. Movement of money you receive and the money you spend
well-known investor services
maturity date
cash flow
principal