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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. Property consisting of houses and land
wants
inflation
dividend
real estate
2. Things that add comfort and pleasure to your life but you can live without if you need to.
wants
grace period
risk averse
financial pages
3. Debt obligations of corporations
corporate bonds
US Treasury Bills
capital gain
risk management
4. 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.
spyware
bank
put-and-take account
origination fee
5. Charles Schwab & TD Ameritrade & E*TRADE
well-know full-service brokers
Series EE Savings Bond
options
well-known discount brokers
6. US treasury security that matures from a few days to one year
risk taker
Series EE Savings Bond
US Treasury Bills
mutual funds
7. Associated with owning stock of similar groups of businesses
Series I Savings Bond
industry risk
Securities and Exchange Commission
mutual funds
8. Amount of money that is set aside for future purchases
Temporary investment
opportunity cost
deductible
savings
9. The setting aside of money for future use or other investments
spyware
futures
pay yourself first - P.Y.F.
corporate bonds
10. Expenses that aren't paid every month and can be either fixed or variable.
risk averse
periodic or occasional expenses
variable expenses
spending plan
11. Brokers who provide clients with analysis and opinions
political risk
stock market
full-service broker
principal
12. Bonds designed for investors wanting to protect again inflation losses
annuities
Series I Savings Bond
corporate bonds
tax deferred
13. A payroll deduction collected by employers by law and sent to the state government to support state services.
savings account
state income tax
social security tax
budget
14. Investing with a series of regular payments; usually associated with life insurance companies
tax deferred
political risk
principal
annuities
15. The amount a corporation borrowed in a bond situation
time value of money
principal
Series EE Savings Bond
well-know full-service brokers
16. Money used for short-term needs like emergencies; advisers recommend three to six months' net pay for set aside for this
chapter 7
initial investing
put-and-take account
company risk
17. The willingness to give up something you want now in return for something better in the future.
delayed gratification
financial advisers
credit union
US Treasury Notes
18. The idea that money today is worth more than the same amount of money in the future due to its potential earning capacity.
delayed gratification
time value of money
Personal Identification Number - PIN
tax deferred
19. A fee charged to a borrower (especially for a mortgage loan) to cover the costs of initiating the loan.
US Treasury Bonds
share draft account
well-know financial magazines
origination fee
20. Contacts to buy and sell commodities or stocks for a specific price on a specific date
credit score
capital gain
coverage limit
futures
21. Collection of investments
portfolio
share account
capital loss
diversification
22. The entire amount of money you owe to lenders
US Treasury Bills
stock market
debt
market risk
23. Smaller decisions that can result from a major decision.
risk averse
origination fee
yield
satellite decisions
24. Contacts to buy and sell commodities or stocks for a specific price on a specific date
tax deferred
annual fee
futures
capital gain
25. US treasury security that matures in 30 years
stock market
phishing
US Treasury Bonds
pay yourself first - P.Y.F.
26. Movement of money you receive and the money you spend
risk management
bank
cash flow
diversification
27. The right & not the obligation & to buy or sell commodities or stocks for a specific price on a specific date
options
Series EE Savings Bond
futures
bank
28. An amount that credit card companies can charge for the use of a credit card.
capital loss
political risk
annual fee
Temporary investment
29. The unique passcode number you use to get access to your savings and/or checking account
compounding interest rate
annual fee
Personal Identification Number - PIN
investor services
30. Uncontrollable and unpredictable events that cause an investment to lose value
risk taker
capital gain
credit history
non-market risk
31. The chance that an investment's value will decrease
investing risk
savings account
diversification
credit history
32. A detailed record of your personal credit and financial transactions.
credit report
opportunity cost
over-the-limit fee
rate of return
33. A financial institution owned by its members that provides savings and checking accounts and other services to its membership at low fees.
market risk
market risk
credit union
municipal bonds
34. 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.
wants
real estate
market risk
social security tax
35. Standard and Poor's and Moody's
well-known investor services
wants
annuities
penny stocks
36. A detailed record of your personal credit and financial transactions.
Personal Identification Number - PIN
principal
credit report
full-service broker
37. A bank account against which the depositor can draw checks payable on demand.
checking account
variable expenses
US Treasury Bonds
political risk
38. The entire amount of money you owe to lenders
credit
debt
annuities
checking account
39. Is a numerical rating - based on credit report information that represents a person's level of creditworthiness
US Treasury Notes
industry risk
credit score
over-the-limit fee
40. Expenses that are not fixed.
universal default
universal default
well-know full-service brokers
variable expenses
41. The amount a corporation pays at a fixed amount when repaying a bond
dollar cost average
yield
ATM - Automatic Teller Machine
interest
42. The credit union term for a checking account.
share draft account
annual report
principal
systematic investing
43. A bank account against which the depositor can draw checks payable on demand.
market risk
risk management
portfolio
checking account
44. Bold and high-risk investments
chapter 13
share account
speculative investments
phishing
45. 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
rate of return
bankruptcy
Series I Savings Bond
46. A spending plan for managing money during a given period of time.
mutual fund
share draft account
spending plan
budget
47. Debt obligations of corporations
corporate bonds
checking account
Securities and Exchange Commission
diversification
48. A general and progressive increase in prices
opportunity cost
penny stocks
compounding interest rate
inflation
49. Brokers who provided little or no information to clients
budget
discount brokers
industry risk
credit report
50. A fee charged to a borrower (especially for a mortgage loan) to cover the costs of initiating the loan.
risk taker
chapter 7
origination fee
Rule of 72