SUBJECTS
|
BROWSE
|
CAREER CENTER
|
POPULAR
|
JOIN
|
LOGIN
Business Skills
|
Soft Skills
|
Basic Literacy
|
Certifications
About
|
Help
|
Privacy
|
Terms
|
Email
Search
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 term that describes investments on which earnings are not taxed until retirement
capital loss
inflation
tax deferred
diversification
2. The chance that inflation will rise faster than the rate of return on an investment
over-the-limit fee
short term goal
interest-rate risk
credit union
3. Debt obligations of state or local governments
municipal bonds
opportunity cost
capital gain
collectibles
4. Movement of money you receive and the money you spend
inflation
options
cash flow
put-and-take account
5. The entire amount of money you owe to lenders
inflation
debt
stocks
Investing
6. Bold and high-risk investments
financial pages
speculative investments
debit card
financial advisers
7. A summary of a person's borrowing and repayment history.
credit history
deductible
short term goal
bankruptcy
8. A payroll deduction collected by employers by law and sent to the state government to support state services.
mutual fund
compounding interest rate
tax deferred
state income tax
9. 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.
mutual funds
yield
Series I Savings Bond
Rule of 72
10. The date on which the borrowed money must be repaid
APR - Average Percentage Rate
stock market
maturity date
bond
11. The maximum amount an insurance company will pay if you file a claim.
coverage limit
spending plan
interest
yield
12. Wall Street Journal and Barron's
well-known financial newspapers
dividend
credit union
investor services
13. The amount a corporation borrowed in a bond situation
satellite decisions
municipal bonds
principal
periodic or occasional expenses
14. Reducing investment risk by putting money in several different types of investments.
risk
investor services
diversification
state income tax
15. Low-priced stocks of small companies that have no track record
yield
real estate
risk
penny stocks
16. 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
bond
yield
credit
17. Expenses that are not fixed.
coverage limit
US Treasury Bonds
variable expenses
social security tax
18. Smaller decisions that can result from a major decision.
Rule of 72
satellite decisions
credit score
credit score
19. Collection of investments
portfolio
principal
coverage limit
capital gain
20. The use of long-term savings to earn a financial return
Investing
diversification
portfolio
discount brokers
21. Management of investment alternatives to maximize the growth of your portfolio
capital loss
strategic investing
short term goal
Rule of 72
22. A government sector that requires all public corporations to make annual reports available to their stockholders
industry risk
diversification
Securities and Exchange Commission
debt
23. A chosen pursuit - profession - or occupation
credit history
chapter 13
career
market risk
24. Losses in an investment as a result of the business cycle
market risk
interest
variable expenses
bank
25. Contacts to buy and sell commodities or stocks for a specific price on a specific date
debit card
stocks
well-known financial newspapers
futures
26. US treasury security that matures in 30 years
systematic investing
US Treasury Bonds
time value of money
initial investing
27. The setting aside of money for future use or other investments
futures
mutual fund
debt
pay yourself first - P.Y.F.
28. The difference between a higher selling price and a lower purchase price - resulting in a financial gain for the seller
credit history
values
capital gain
periodic or occasional expenses
29. A bank account against which the depositor can draw checks payable on demand.
Series I Savings Bond
debt
municipal bonds
checking account
30. US treasury security that matures in 2 & 5 & or 10 years
capital gain
bank
US Treasury Notes
risk management
31. 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.
chapter 13
values
principal
Rule of 72
32. Debt obligations of corporations
corporate bonds
interest
political risk
investing risk
33. 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.
credit
risk management
APR - Average Percentage Rate
debit card
34. Summary of a corporation's financial condition
ATM - Automatic Teller Machine
annual report
bank
market risk
35. A fee charged to a borrower (especially for a mortgage loan) to cover the costs of initiating the loan.
origination fee
savings account
systematic investing
risk management
36. Debt obligations of corporations
checking account
put-and-take account
corporate bonds
universal default
37. Brokers who provided little or no information to clients
tax deferred
discount brokers
permanent investment
Securities and Exchange Commission
38. Another term for budget
spending plan
Securities and Exchange Commission
capital loss
well-know full-service brokers
39. Standard and Poor's and Moody's
short term goal
well-known investor services
dollar cost average
principal
40. The place where stocks are bought and sold.
credit score
financial pages
compounding interest rate
stock market
41. The credit union term for a checking account.
share draft account
diversification
credit report
state income tax
42. Smaller decisions that can result from a major decision.
permanent investment
satellite decisions
stock
over-the-limit fee
43. The process of dealing with the chance of a potential personal or financial loss.
risk management
US Treasury Bills
Series I Savings Bond
risk taker
44. US treasury security that matures from a few days to one year
ATM - Automatic Teller Machine
US Treasury Bills
rate of return
credit
45. Things that add comfort and pleasure to your life but you can live without if you need to.
periodic or occasional expenses
wants
stock
well-known investor services
46. Standard and Poor's and Moody's
corporate bonds
well-known investor services
inflation
dividend
47. The belief - qualities - or standards that you consider important or desirable.
share account
values
Rule of 72
variable expenses
48. A unit of ownership in a corporation
stocks
savings account
budget
credit score
49. The belief - qualities - or standards that you consider important or desirable.
non-market risk
real estate
values
periodic or occasional expenses
50. People trained to give investment advise based on your goals & age & lifestyle & etc
dollar cost average
maturity date
financial advisers
Personal Identification Number - PIN