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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. The place where stocks are bought and sold.
debit card
bank
interest-rate risk
stock market
2. Standard and Poor's and Moody's
Rule of 72
diversification
well-known investor services
state income tax
3. A summary of a person's borrowing and repayment history.
bank
dollar cost average
Securities and Exchange Commission
credit history
4. Investment choices that will be held for long periods
permanent investment
bank
discount brokers
dividend
5. 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.'
risk
diversification
financial advisers
debit card
6. The increase or decrease in the original purchase price of an investment over a period of time.
coverage limit
rate of return
chapter 7
credit history
7. Reducing investment risk by putting money in several different types of investments.
universal default
diversification
market risk
satellite decisions
8. Property consisting of houses and land
financial advisers
yield
capital loss
real estate
9. A government sector that requires all public corporations to make annual reports available to their stockholders
Securities and Exchange Commission
share account
US Treasury Notes
Rule of 72
10. An electronic machine that bank customers and credit union members can use to withdraw cash and make other financial transactions.
short term goal
well-known financial newspapers
ATM - Automatic Teller Machine
pay yourself first - P.Y.F.
11. Regular and planned investments
financial advisers
systematic investing
financial advisers
investor services
12. The right & not the obligation & to buy or sell commodities or stocks for a specific price on a specific date
options
wants
annual report
savings
13. The amount of a loss you must pay out of your own pocket before the insurance company will step in and pay the rest.
deductible
Series I Savings Bond
corporate bonds
over-the-limit fee
14. The setting aside of money for future use or other investments
penny stocks
pay yourself first - P.Y.F.
variable expenses
credit history
15. A spending plan for managing money during a given period of time.
Rule of 72
annuities
budget
spending plan
16. 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.
Investing
debit card
credit
mutual fund
17. A payroll deduction collected by employers by law and sent to the federal government to provide a small income and other services to the elderly - disabled Americans - and orphaned minors.
social security tax
ATM - Automatic Teller Machine
mutual funds
options
18. A unit of ownership in a corporation
discount brokers
maturity date
stocks
grace period
19. The amount of money someone is willing to loan you.
principal
inflation
cash flow
industry risk
20. The credit union term for a savings account.
share account
risk
strategic investing
risk management
21. A goal to be achieved within the next three months.
short term goal
non-market risk
market risk
company risk
22. Investors who take to take chances
risk taker
cash flow
Investing
Series EE Savings Bond
23. The difference between a lower selling price and a higher purchase price resulting in a financial loss for the seller
capital loss
industry risk
well-known discount brokers
debt
24. The portion of the profits paid to the shareholders of a company.
US Treasury Bonds
opportunity cost
time value of money
dividend
25. 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
collectibles
investing risk
opportunity cost
26. Charles Schwab & TD Ameritrade & E*TRADE
Rule of 72
well-known discount brokers
portfolio
Rule of 72
27. A financial institution owned by its members that provides savings and checking accounts and other services to its membership at low fees.
Rule of 72
credit history
debit card
credit union
28. The credit union term for a savings account.
share account
periodic or occasional expenses
mutual funds
time value of money
29. Summary of a corporation's financial condition
well-know full-service brokers
over-the-limit fee
Series I Savings Bond
annual report
30. Reducing investment risk by putting money in several different types of investments.
annuities
Securities and Exchange Commission
risk taker
diversification
31. The entire amount of money you owe to lenders
corporate bonds
market risk
debt
portfolio
32. An amount of money that is loaned on trust with the expectation that it will be repaid at a later date.
rate of return
ATM - Automatic Teller Machine
credit
capital loss
33. A term that describes investments on which earnings are not taxed until retirement
tax deferred
municipal bonds
values
savings account
34. A chosen pursuit - profession - or occupation
US Treasury Notes
principal
maturity date
career
35. A form of bankruptcy that allows you to erase most of your debt.
risk averse
principal
chapter 7
capital loss
36. Management of investment alternatives to maximize the growth of your portfolio
strategic investing
credit report
yield
options
37. A summary of a person's borrowing and repayment history.
portfolio
credit history
bank
options
38. A for-profit company that is owned by its stockholders and provides savings and checking accounts and other financial services to its customers.
annual report
bank
Rule of 72
stock market
39. US treasury security that matures in 30 years
systematic investing
chapter 7
opportunity cost
US Treasury Bonds
40. The portion of the profits paid to the shareholders of a company.
checking account
risk
dividend
speculative investments
41. Debt obligations of corporations
corporate bonds
speculative investments
capital loss
savings
42. The probability that injury - damage - or loss will occur.
social security tax
universal default
risk
well-known financial newspapers
43. The value of What is given up when you choose one option over another.
credit
US Treasury Bonds
debit card
opportunity cost
44. The chance that an investment's value will decrease
savings account
diversification
investing risk
futures
45. Maximum amount of credit a lender will extend to a customer.
well-known discount brokers
bond
inflation
credit limit
46. Debt obligations of state or local governments
municipal bonds
credit union
full-service broker
US Treasury Bonds
47. Actions that the government might take that would reduce the value of an investment
Investing
principal
political risk
industry risk
48. Bold and high-risk investments
share draft account
speculative investments
bankruptcy
stocks
49. Uncontrollable and unpredictable events that cause an investment to lose value
Series EE Savings Bond
collectibles
non-market risk
municipal bonds
50. Things that add comfort and pleasure to your life but you can live without if you need to.
chapter 7
municipal bonds
wants
deductible