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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. Collection of investments
corporate bonds
portfolio
time value of money
phishing
2. Maximum amount of credit a lender will extend to a customer.
savings account
tax deferred
credit limit
stocks
3. Pooling of money from many investors to buy a large & diverse selection of securities
origination fee
credit
mutual funds
industry risk
4. A technique to gain personal information for the purpose of identity theft - usually by means of fraudulent e-mail or pop-up messages.
phishing
stocks
annuities
deductible
5. A fee charged to a borrower (especially for a mortgage loan) to cover the costs of initiating the loan.
budget
bank
debt
origination fee
6. A term that describes investments on which earnings are not taxed until retirement
interest
tax deferred
well-know financial magazines
capital loss
7. Brokers who provided little or no information to clients
stock market
spending plan
full-service broker
discount brokers
8. The place where stocks are bought and sold.
non-market risk
credit limit
stock market
savings
9. A formal contract to repay borrowed money with interest at fixed intervals
short term goal
share draft account
APR - Average Percentage Rate
bond
10. Another term for budget
chapter 13
spending plan
full-service broker
discount brokers
11. Movement of money you receive and the money you spend
cash flow
mutual funds
credit union
Temporary investment
12. The date on which the borrowed money must be repaid
well-known financial newspapers
stock market
maturity date
investor services
13. 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.
well-know financial magazines
dividend
spyware
interest-rate risk
14. 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.
share account
US Treasury Bonds
mutual fund
systematic investing
15. Investors who take to take chances
satellite decisions
well-known discount brokers
risk taker
grace period
16. Debt obligations of corporations
corporate bonds
savings account
systematic investing
interest-rate risk
17. A form of bankruptcy that allows you to erase most of your debt.
cash flow
financial advisers
chapter 7
universal default
18. An amount that credit card companies can charge for the use of a credit card.
delayed gratification
annual fee
debit card
interest-rate risk
19. Debt obligations of state or local governments
municipal bonds
credit report
US Treasury Notes
budget
20. A unit of ownership in a corporation
interest-rate risk
stocks
US Treasury Bonds
permanent investment
21. Investors who take to take chances
discount brokers
risk taker
penny stocks
stocks
22. US treasury security that matures in 2 & 5 & or 10 years
grace period
US Treasury Bills
US Treasury Notes
well-known financial newspapers
23. Associated with owning stock of similar groups of businesses
maturity date
industry risk
chapter 7
well-know financial magazines
24. Wall Street Journal and Barron's
satellite decisions
credit union
bank
well-known financial newspapers
25. Newspapers list of securities
deductible
pay yourself first - P.Y.F.
financial pages
budget
26. The difference between a higher selling price and a lower purchase price - resulting in a financial gain for the seller
capital gain
chapter 13
spending plan
US Treasury Bills
27. Associated with owning stock of similar groups of businesses
deductible
APR - Average Percentage Rate
industry risk
budget
28. A chosen pursuit - profession - or occupation
career
bankruptcy
market risk
mutual funds
29. On a credit card - the length of time you have before you start accumulating interest on an unpaid balance.
chapter 13
grace period
state income tax
state income tax
30. A payroll deduction collected by employers by law and sent to the state government to support state services.
company risk
annuities
state income tax
credit score
31. Money used for short-term needs like emergencies; advisers recommend three to six months' net pay for set aside for this
Personal Identification Number - PIN
well-known investor services
put-and-take account
credit limit
32. The use of long-term savings to earn a financial return
full-service broker
Investing
share draft account
company risk
33. The credit union term for a checking account.
chapter 7
share draft account
investing risk
principal
34. Management of investment alternatives to maximize the growth of your portfolio
budget
municipal bonds
well-know financial magazines
strategic investing
35. 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.
APR - Average Percentage Rate
stock
Rule of 72
credit score
36. Debt obligations of corporations
cash flow
corporate bonds
periodic or occasional expenses
savings
37. Movement of money you receive and the money you spend
political risk
share draft account
cash flow
non-market risk
38. Companies that provide extensive financial data to clients
over-the-limit fee
US Treasury Bills
investor services
portfolio
39. Business Weekly & Forbes & Money
universal default
values
well-know financial magazines
dollar cost average
40. A legal process to get out of debt when you can no longer make all your required payments.
options
bankruptcy
opportunity cost
stock
41. A legal process to get out of debt when you can no longer make all your required payments.
pay yourself first - P.Y.F.
corporate bonds
full-service broker
bankruptcy
42. US treasury security that matures from a few days to one year
opportunity cost
US Treasury Bills
financial advisers
penny stocks
43. Charles Schwab & TD Ameritrade & E*TRADE
well-known discount brokers
cash flow
pay yourself first - P.Y.F.
discount brokers
44. Management of investment alternatives to maximize the growth of your portfolio
political risk
interest
strategic investing
checking account
45. The maximum amount an insurance company will pay if you file a claim.
US Treasury Notes
cash flow
coverage limit
Series I Savings Bond
46. 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.'
credit history
credit history
phishing
debit card
47. A summary of a person's borrowing and repayment history.
systematic investing
universal default
full-service broker
credit history
48. Charles Schwab & TD Ameritrade & E*TRADE
pay yourself first - P.Y.F.
well-known discount brokers
periodic or occasional expenses
cash flow
49. The idea that money today is worth more than the same amount of money in the future due to its potential earning capacity.
capital loss
US Treasury Notes
checking account
time value of money
50. The willingness to give up something you want now in return for something better in the future.
delayed gratification
discount brokers
risk
stock