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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. Amount of money that is set aside for future purchases
stocks
maturity date
savings
company risk
2. The belief - qualities - or standards that you consider important or desirable.
APR - Average Percentage Rate
periodic or occasional expenses
Temporary investment
values
3. Business Weekly & Forbes & Money
opportunity cost
well-know financial magazines
initial investing
stock
4. Investment choices that will be re-evaluated within a year or less
Rule of 72
Temporary investment
principal
capital gain
5. A unit of ownership in a corporation
chapter 13
collectibles
stocks
risk taker
6. Contacts to buy and sell commodities or stocks for a specific price on a specific date
futures
principal
capital loss
periodic or occasional expenses
7. 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.
universal default
well-known investor services
over-the-limit fee
credit union
8. The difference between a lower selling price and a higher purchase price resulting in a financial loss for the seller
pay yourself first - P.Y.F.
options
company risk
capital loss
9. 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.
real estate
municipal bonds
portfolio
APR - Average Percentage Rate
10. Conservative investing; used when you have 'excess' savings
credit history
municipal bonds
initial investing
real estate
11. Losses in an investment as a result of the business cycle
Rule of 72
market risk
over-the-limit fee
mutual funds
12. Business Weekly & Forbes & Money
well-know financial magazines
Investing
diversification
initial investing
13. The amount a corporation pays at a fixed amount when repaying a bond
futures
interest
well-known discount brokers
annuities
14. The value of What is given up when you choose one option over another.
corporate bonds
state income tax
opportunity cost
time value of money
15. Investment choices that will be held for long periods
credit limit
well-know full-service brokers
delayed gratification
permanent investment
16. The practice of investing a fixed amount into the same investment at regular intervals - regardless of what the stock market is doing.
credit union
dollar cost average
spending plan
penny stocks
17. 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.
mutual fund
portfolio
spyware
bank
18. The amount of a loss you must pay out of your own pocket before the insurance company will step in and pay the rest.
over-the-limit fee
deductible
diversification
debt
19. Charles Schwab & TD Ameritrade & E*TRADE
well-known discount brokers
state income tax
risk averse
values
20. The portion of the profits paid to the shareholders of a company.
full-service broker
dividend
budget
diversification
21. The value of What is given up when you choose one option over another.
opportunity cost
diversification
Investing
put-and-take account
22. Wall Street Journal and Barron's
US Treasury Bonds
Securities and Exchange Commission
well-known financial newspapers
speculative investments
23. A government sector that requires all public corporations to make annual reports available to their stockholders
capital loss
grace period
Securities and Exchange Commission
US Treasury Notes
24. The amount of money someone is willing to loan you.
well-known financial newspapers
mutual funds
principal
risk averse
25. 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.
pay yourself first - P.Y.F.
savings account
credit
spending plan
26. Discount bonds; a bond purchased for less than the maturity value; example you buy a $50 bond for $25
yield
Series EE Savings Bond
well-know full-service brokers
inflation
27. The profit from an investment.
yield
investing risk
dividend
opportunity cost
28. The difference between a lower selling price and a higher purchase price resulting in a financial loss for the seller
debt
credit limit
capital loss
industry risk
29. US treasury security that matures from a few days to one year
periodic or occasional expenses
US Treasury Bills
dollar cost average
deductible
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.
credit
social security tax
universal default
compounding interest rate
31. Reducing investment risk by putting money in several different types of investments.
well-known investor services
diversification
industry risk
Securities and Exchange Commission
32. Investors who are afraid to make investments
risk management
opportunity cost
risk taker
risk averse
33. Investment choices that will be held for long periods
share account
permanent investment
checking account
financial pages
34. The right & not the obligation & to buy or sell commodities or stocks for a specific price on a specific date
deductible
time value of money
collectibles
options
35. Coins & art & memorabilia or other items that are popular from time to time
wants
collectibles
coverage limit
stock
36. On a credit card - the length of time you have before you start accumulating interest on an unpaid balance.
debt
investing risk
real estate
grace period
37. An amount that credit card companies can charge for the use of a credit card.
capital loss
savings
inflation
annual fee
38. Pooling of money from many investors to buy a large & diverse selection of securities
mutual funds
non-market risk
futures
stocks
39. A term that describes investments on which earnings are not taxed until retirement
mutual funds
share account
industry risk
tax deferred
40. Discount bonds; a bond purchased for less than the maturity value; example you buy a $50 bond for $25
Series EE Savings Bond
cash flow
strategic investing
municipal bonds
41. Regular and planned investments
systematic investing
pay yourself first - P.Y.F.
credit limit
coverage limit
42. An electronic machine that bank customers and credit union members can use to withdraw cash and make other financial transactions.
ATM - Automatic Teller Machine
well-known financial newspapers
principal
phishing
43. The chance that an investment's value will decrease
inflation
investing risk
bankruptcy
US Treasury Notes
44. Maximum amount of credit a lender will extend to a customer.
credit limit
real estate
origination fee
rate of return
45. A financial institution owned by its members that provides savings and checking accounts and other services to its membership at low fees.
credit union
financial pages
interest-rate risk
Temporary investment
46. A general and progressive increase in prices
wants
bond
inflation
industry risk
47. A card that is used to deduct a purchase amount directly from your checking account instead of drawing on a line of credit; also called 'check card.'
full-service broker
periodic or occasional expenses
debit card
dividend
48. The willingness to give up something you want now in return for something better in the future.
rate of return
checking account
ATM - Automatic Teller Machine
delayed gratification
49. A technique used for estimating the number of years required to double your money at a given rate
dividend
speculative investments
Rule of 72
diversification
50. Investors who take to take chances
risk taker
capital loss
variable expenses
full-service broker