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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. Losses in an investment as a result of the business cycle
market risk
bankruptcy
opportunity cost
yield
2. Contacts to buy and sell commodities or stocks for a specific price on a specific date
full-service broker
initial investing
options
futures
3. A technique to gain personal information for the purpose of identity theft - usually by means of fraudulent e-mail or pop-up messages.
financial pages
Securities and Exchange Commission
spending plan
phishing
4. Investment choices that will be re-evaluated within a year or less
spending plan
capital gain
annuities
Temporary investment
5. Movement of money you receive and the money you spend
diversification
portfolio
over-the-limit fee
cash flow
6. The amount a corporation borrowed in a bond situation
rate of return
capital loss
speculative investments
principal
7. The difference between a lower selling price and a higher purchase price resulting in a financial loss for the seller
stock
career
capital loss
discount brokers
8. Business Weekly & Forbes & Money
tax deferred
real estate
well-know financial magazines
well-known financial newspapers
9. A formal contract to repay borrowed money with interest at fixed intervals
cash flow
credit
bond
risk
10. On a credit card - the length of time you have before you start accumulating interest on an unpaid balance.
grace period
bond
phishing
Personal Identification Number - PIN
11. 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.
annuities
budget
systematic investing
mutual fund
12. The use of long-term savings to earn a financial return
credit
Investing
share draft account
deductible
13. Business Weekly & Forbes & Money
short term goal
share account
well-know financial magazines
capital gain
14. Charles Schwab & TD Ameritrade & E*TRADE
well-known discount brokers
bank
diversification
opportunity cost
15. Investing with a series of regular payments; usually associated with life insurance companies
annual fee
portfolio
speculative investments
annuities
16. The profit from an investment.
annual fee
diversification
state income tax
yield
17. Things that add comfort and pleasure to your life but you can live without if you need to.
savings account
annual report
budget
wants
18. A form of bankruptcy that allows you to repay many of your debts over a period of time - usually no more than five years.
put-and-take account
US Treasury Notes
pay yourself first - P.Y.F.
chapter 13
19. A payroll deduction collected by employers by law and sent to the state government to support state services.
yield
grace period
state income tax
diversification
20. A government sector that requires all public corporations to make annual reports available to their stockholders
Securities and Exchange Commission
periodic or occasional expenses
values
APR - Average Percentage Rate
21. The process of dealing with the chance of a potential personal or financial loss.
debit card
options
risk management
industry risk
22. Conservative investing; used when you have 'excess' savings
initial investing
periodic or occasional expenses
Investing
savings account
23. Is a numerical rating - based on credit report information that represents a person's level of creditworthiness
US Treasury Bills
credit score
savings
risk
24. Pooling of money from many investors to buy a large & diverse selection of securities
well-known investor services
mutual funds
maturity date
satellite decisions
25. Investors who take to take chances
bankruptcy
risk taker
stock
investor services
26. Investment choices that will be held for long periods
interest
spending plan
company risk
permanent investment
27. The increase or decrease in the original purchase price of an investment over a period of time.
Personal Identification Number - PIN
rate of return
chapter 7
budget
28. Money used for short-term needs like emergencies; advisers recommend three to six months' net pay for set aside for this
inflation
bond
compounding interest rate
put-and-take account
29. Contacts to buy and sell commodities or stocks for a specific price on a specific date
mutual funds
futures
non-market risk
mutual fund
30. Amount of money that is set aside for future purchases
permanent investment
credit score
capital loss
savings
31. A general and progressive increase in prices
stock
inflation
debt
wants
32. The date on which the borrowed money must be repaid
financial advisers
maturity date
Series EE Savings Bond
coverage limit
33. A legal process to get out of debt when you can no longer make all your required payments.
yield
short term goal
capital loss
bankruptcy
34. Regular and planned investments
real estate
credit score
diversification
systematic investing
35. 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.
phishing
social security tax
mutual funds
collectibles
36. 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.
stock
debit card
credit history
APR - Average Percentage Rate
37. The practice of investing a fixed amount into the same investment at regular intervals - regardless of what the stock market is doing.
dollar cost average
well-known discount brokers
debit card
tax deferred
38. A chosen pursuit - profession - or occupation
well-known financial newspapers
yield
career
strategic investing
39. The use of long-term savings to earn a financial return
Investing
savings
US Treasury Bonds
chapter 7
40. An electronic machine that bank customers and credit union members can use to withdraw cash and make other financial transactions.
chapter 7
ATM - Automatic Teller Machine
compounding interest rate
US Treasury Bills
41. The portion of the profits paid to the shareholders of a company.
principal
non-market risk
over-the-limit fee
dividend
42. The right & not the obligation & to buy or sell commodities or stocks for a specific price on a specific date
savings account
options
inflation
cash flow
43. A summary of a person's borrowing and repayment history.
options
credit history
cash flow
state income tax
44. Management of investment alternatives to maximize the growth of your portfolio
strategic investing
put-and-take account
phishing
rate of return
45. Collection of investments
well-known investor services
Temporary investment
company risk
portfolio
46. The date on which the borrowed money must be repaid
opportunity cost
diversification
maturity date
options
47. A certificate documenting the shareholder's ownership in the corporation
stock
state income tax
credit score
capital loss
48. A for-profit company that is owned by its stockholders and provides savings and checking accounts and other financial services to its customers.
Temporary investment
company risk
bank
credit history
49. The amount of money someone is willing to loan you.
investing risk
Series I Savings Bond
principal
compounding interest rate
50. Wall Street Journal and Barron's
well-known financial newspapers
systematic investing
chapter 7
yield