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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. 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.
opportunity cost
Rule of 72
systematic investing
well-known financial newspapers
2. The amount of a loss you must pay out of your own pocket before the insurance company will step in and pay the rest.
well-known financial newspapers
deductible
Securities and Exchange Commission
bank
3. Discount bonds; a bond purchased for less than the maturity value; example you buy a $50 bond for $25
Series EE Savings Bond
short term goal
annuities
credit union
4. Newspapers list of securities
financial pages
corporate bonds
futures
budget
5. Pooling of money from many investors to buy a large & diverse selection of securities
annual report
interest
mutual funds
well-know full-service brokers
6. A payroll deduction collected by employers by law and sent to the state government to support state services.
investing risk
Series EE Savings Bond
opportunity cost
state income tax
7. The probability that injury - damage - or loss will occur.
industry risk
risk
portfolio
well-know full-service brokers
8. 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
credit history
share draft account
bank
9. A for-profit company that is owned by its stockholders and provides savings and checking accounts and other financial services to its customers.
bank
satellite decisions
Rule of 72
budget
10. 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
US Treasury Notes
credit union
delayed gratification
11. A summary of a person's borrowing and repayment history.
stock market
strategic investing
diversification
credit history
12. A goal to be achieved within the next three months.
short term goal
initial investing
origination fee
social security tax
13. Uncontrollable and unpredictable events that cause an investment to lose value
deductible
satellite decisions
non-market risk
short term goal
14. Debt obligations of state or local governments
dividend
municipal bonds
non-market risk
credit score
15. The date on which the borrowed money must be repaid
maturity date
share account
yield
stock
16. Losses in an investment as a result of the business cycle
discount brokers
speculative investments
market risk
industry risk
17. A unit of ownership in a corporation
delayed gratification
stocks
phishing
debit card
18. A bad side effect of free downloads that may be used to send you pop-up ads - redirect your computer to unwanted Web sites - monitor your Internet surfing - or record your keystrokes in an effort to steal your identity.
coverage limit
risk
values
spyware
19. Associated with owning stock of only one company
company risk
tax deferred
wants
permanent investment
20. A technique used for estimating the number of years required to double your money at a given rate
stock
Rule of 72
bankruptcy
principal
21. Smaller decisions that can result from a major decision.
spending plan
stock market
over-the-limit fee
satellite decisions
22. The practice of investing a fixed amount into the same investment at regular intervals - regardless of what the stock market is doing.
stocks
phishing
well-know financial magazines
dollar cost average
23. The amount a corporation borrowed in a bond situation
opportunity cost
stock
systematic investing
principal
24. Actions that the government might take that would reduce the value of an investment
investing risk
cash flow
mutual funds
political risk
25. Contacts to buy and sell commodities or stocks for a specific price on a specific date
risk averse
capital loss
futures
Investing
26. Summary of a corporation's financial condition
corporate bonds
strategic investing
futures
annual report
27. Merrill Lynch & Fidelity Investments & American Express
diversification
market risk
well-know full-service brokers
variable expenses
28. 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.
periodic or occasional expenses
Temporary investment
social security tax
stocks
29. Business Weekly & Forbes & Money
financial pages
pay yourself first - P.Y.F.
well-know financial magazines
stocks
30. The setting aside of money for future use or other investments
US Treasury Notes
rate of return
pay yourself first - P.Y.F.
speculative investments
31. The setting aside of money for future use or other investments
pay yourself first - P.Y.F.
well-know financial magazines
annuities
interest-rate risk
32. Business Weekly & Forbes & Money
pay yourself first - P.Y.F.
APR - Average Percentage Rate
well-know financial magazines
US Treasury Notes
33. Expenses that are not fixed.
deductible
bond
credit report
variable expenses
34. The portion of the profits paid to the shareholders of a company.
credit limit
dividend
penny stocks
investor services
35. Conservative investing; used when you have 'excess' savings
rate of return
initial investing
spyware
periodic or occasional expenses
36. A financial institution owned by its members that provides savings and checking accounts and other services to its membership at low fees.
annual report
credit union
financial advisers
chapter 7
37. Low-priced stocks of small companies that have no track record
put-and-take account
penny stocks
deductible
rate of return
38. A bank account against which the depositor can draw checks payable on demand.
risk management
delayed gratification
checking account
investor services
39. A general and progressive increase in prices
dividend
inflation
US Treasury Bills
permanent investment
40. The portion of the profits paid to the shareholders of a company.
dividend
opportunity cost
grace period
initial investing
41. An electronic machine that bank customers and credit union members can use to withdraw cash and make other financial transactions.
ATM - Automatic Teller Machine
state income tax
maturity date
investing risk
42. Management of investment alternatives to maximize the growth of your portfolio
strategic investing
annuities
chapter 7
stocks
43. Is a numerical rating - based on credit report information that represents a person's level of creditworthiness
credit score
strategic investing
political risk
risk averse
44. Maximum amount of credit a lender will extend to a customer.
stock market
credit limit
capital gain
origination fee
45. The credit union term for a checking account.
cash flow
social security tax
futures
share draft account
46. The idea that money today is worth more than the same amount of money in the future due to its potential earning capacity.
savings account
time value of money
share draft account
social security tax
47. The difference between a higher selling price and a lower purchase price - resulting in a financial gain for the seller
investor services
capital gain
US Treasury Bills
spending plan
48. An electronic machine that bank customers and credit union members can use to withdraw cash and make other financial transactions.
mutual funds
ATM - Automatic Teller Machine
US Treasury Bills
cash flow
49. Summary of a corporation's financial condition
deductible
career
US Treasury Bills
annual report
50. The probability that injury - damage - or loss will occur.
annuities
financial advisers
credit report
risk