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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 difference between a higher selling price and a lower purchase price - resulting in a financial gain for the seller
capital gain
principal
portfolio
investing risk
2. The amount a corporation borrowed in a bond situation
APR - Average Percentage Rate
principal
investing risk
annual report
3. Reducing investment risk by putting money in several different types of investments.
Series EE Savings Bond
chapter 13
systematic investing
diversification
4. A unit of ownership in a corporation
interest-rate risk
stocks
mutual funds
bank
5. The difference between a lower selling price and a higher purchase price resulting in a financial loss for the seller
delayed gratification
diversification
capital loss
US Treasury Bills
6. Amount of money that is set aside for future purchases
pay yourself first - P.Y.F.
spending plan
variable expenses
savings
7. Things that add comfort and pleasure to your life but you can live without if you need to.
Temporary investment
Temporary investment
wants
periodic or occasional expenses
8. Fee on credit card for making charges above your credit limit.
over-the-limit fee
interest
rate of return
social security tax
9. A detailed record of your personal credit and financial transactions.
well-known discount brokers
credit report
corporate bonds
municipal bonds
10. A form of bankruptcy that allows you to erase most of your debt.
well-known investor services
chapter 7
municipal bonds
financial advisers
11. The unique passcode number you use to get access to your savings and/or checking account
bank
Personal Identification Number - PIN
Series EE Savings Bond
risk management
12. Debt obligations of state or local governments
share draft account
phishing
municipal bonds
Series I Savings Bond
13. The entire amount of money you owe to lenders
maturity date
short term goal
debt
delayed gratification
14. Management of investment alternatives to maximize the growth of your portfolio
APR - Average Percentage Rate
put-and-take account
Series EE Savings Bond
strategic investing
15. 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.
share draft account
savings
social security tax
satellite decisions
16. Brokers who provide clients with analysis and opinions
credit
initial investing
periodic or occasional expenses
full-service broker
17. The process of dealing with the chance of a potential personal or financial loss.
non-market risk
risk management
career
wants
18. The date on which the borrowed money must be repaid
stocks
maturity date
bankruptcy
options
19. Newspapers list of securities
dollar cost average
debit card
permanent investment
financial pages
20. The amount a corporation borrowed in a bond situation
periodic or occasional expenses
social security tax
principal
Series I Savings Bond
21. A chosen pursuit - profession - or occupation
opportunity cost
career
municipal bonds
Series I Savings Bond
22. Associated with owning stock of only one company
discount brokers
company risk
well-known financial newspapers
short term goal
23. Investment choices that will be held for long periods
collectibles
US Treasury Notes
permanent investment
corporate bonds
24. Low-priced stocks of small companies that have no track record
penny stocks
US Treasury Bonds
credit score
principal
25. Smaller decisions that can result from a major decision.
bankruptcy
interest-rate risk
Rule of 72
satellite decisions
26. Expenses that aren't paid every month and can be either fixed or variable.
budget
universal default
periodic or occasional expenses
Investing
27. Merrill Lynch & Fidelity Investments & American Express
well-know full-service brokers
debit card
credit history
ATM - Automatic Teller Machine
28. Investors who take to take chances
put-and-take account
Securities and Exchange Commission
risk taker
speculative investments
29. US treasury security that matures in 2 & 5 & or 10 years
periodic or occasional expenses
US Treasury Notes
cash flow
well-know financial magazines
30. A financial institution owned by its members that provides savings and checking accounts and other services to its membership at low fees.
investor services
capital loss
credit union
corporate bonds
31. A payroll deduction collected by employers by law and sent to the state government to support state services.
dollar cost average
diversification
state income tax
periodic or occasional expenses
32. Maximum amount of credit a lender will extend to a customer.
ATM - Automatic Teller Machine
financial pages
credit limit
chapter 7
33. Spreading risk among many types of investments; one way to minimize risk
diversification
US Treasury Bonds
permanent investment
savings account
34. Collection of investments
risk averse
portfolio
tax deferred
Series I Savings Bond
35. Expenses that are not fixed.
speculative investments
variable expenses
annuities
phishing
36. A detailed record of your personal credit and financial transactions.
spending plan
portfolio
tax deferred
credit report
37. The probability that injury - damage - or loss will occur.
initial investing
risk
mutual fund
Personal Identification Number - PIN
38. Bonds designed for investors wanting to protect again inflation losses
Rule of 72
Series I Savings Bond
risk averse
options
39. The difference between a higher selling price and a lower purchase price - resulting in a financial gain for the seller
compounding interest rate
savings account
capital gain
non-market risk
40. The belief - qualities - or standards that you consider important or desirable.
values
well-known investor services
collectibles
options
41. A legal process to get out of debt when you can no longer make all your required payments.
bankruptcy
short term goal
well-known discount brokers
stock market
42. The entire amount of money you owe to lenders
industry risk
Series EE Savings Bond
debt
state income tax
43. Investing with a series of regular payments; usually associated with life insurance companies
annuities
variable expenses
bankruptcy
variable expenses
44. Maximum amount of credit a lender will extend to a customer.
principal
APR - Average Percentage Rate
credit limit
capital gain
45. Companies that provide extensive financial data to clients
career
investor services
put-and-take account
origination fee
46. The willingness to give up something you want now in return for something better in the future.
well-known financial newspapers
over-the-limit fee
interest-rate risk
delayed gratification
47. A summary of a person's borrowing and repayment history.
risk management
variable expenses
credit history
stock
48. The credit union term for a savings account.
financial pages
risk
share account
financial pages
49. 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.
spending plan
social security tax
interest-rate risk
stock market
50. Discount bonds; a bond purchased for less than the maturity value; example you buy a $50 bond for $25
share draft account
credit
dollar cost average
Series EE Savings Bond