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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. The amount of a loss you must pay out of your own pocket before the insurance company will step in and pay the rest.
corporate bonds
deductible
risk averse
put-and-take account
2. Investment choices that will be re-evaluated within a year or less
investor services
deductible
well-known discount brokers
Temporary investment
3. Reducing investment risk by putting money in several different types of investments.
non-market risk
Investing
inflation
diversification
4. Associated with owning stock of similar groups of businesses
yield
industry risk
inflation
risk
5. 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.
permanent investment
mutual fund
risk management
career
6. Low-priced stocks of small companies that have no track record
well-know full-service brokers
rate of return
capital gain
penny stocks
7. On a credit card - the length of time you have before you start accumulating interest on an unpaid balance.
diversification
Temporary investment
discount brokers
grace period
8. Associated with owning stock of only one company
put-and-take account
company risk
Rule of 72
debit card
9. The amount a corporation borrowed in a bond situation
principal
interest
phishing
investing risk
10. Charles Schwab & TD Ameritrade & E*TRADE
permanent investment
maturity date
well-known discount brokers
bankruptcy
11. The place where stocks are bought and sold.
bank
time value of money
debt
stock market
12. The increase or decrease in the original purchase price of an investment over a period of time.
mutual funds
rate of return
opportunity cost
social security tax
13. Fee on credit card for making charges above your credit limit.
principal
credit
interest-rate risk
over-the-limit fee
14. US treasury security that matures from a few days to one year
risk averse
ATM - Automatic Teller Machine
checking account
US Treasury Bills
15. A legal process to get out of debt when you can no longer make all your required payments.
bankruptcy
put-and-take account
dividend
origination fee
16. The chance that inflation will rise faster than the rate of return on an investment
market risk
options
interest-rate risk
dollar cost average
17. A detailed record of your personal credit and financial transactions.
state income tax
credit report
maturity date
origination fee
18. Conservative investing; used when you have 'excess' savings
ATM - Automatic Teller Machine
rate of return
stock
initial investing
19. Low-priced stocks of small companies that have no track record
annual fee
non-market risk
coverage limit
penny stocks
20. Collection of investments
financial advisers
debit card
chapter 7
portfolio
21. The unique passcode number you use to get access to your savings and/or checking account
short term goal
coverage limit
Personal Identification Number - PIN
share account
22. Debt obligations of corporations
industry risk
risk averse
inflation
corporate bonds
23. A formal contract to repay borrowed money with interest at fixed intervals
bank
bond
wants
political risk
24. Regular and planned investments
credit union
spyware
systematic investing
well-known investor services
25. Another term for budget
wants
put-and-take account
spending plan
Rule of 72
26. Expenses that are not fixed.
short term goal
capital loss
spending plan
variable expenses
27. Business Weekly & Forbes & Money
rate of return
bank
opportunity cost
well-know financial magazines
28. An amount that credit card companies can charge for the use of a credit card.
Series EE Savings Bond
periodic or occasional expenses
annual fee
phishing
29. Business Weekly & Forbes & Money
credit report
well-know financial magazines
budget
over-the-limit fee
30. Is a numerical rating - based on credit report information that represents a person's level of creditworthiness
initial investing
career
budget
credit score
31. Collection of investments
dollar cost average
portfolio
penny stocks
bankruptcy
32. A payroll deduction collected by employers by law and sent to the state government to support state services.
non-market risk
state income tax
debit card
ATM - Automatic Teller Machine
33. The chance that an investment's value will decrease
investing risk
credit
chapter 7
stock
34. The amount a corporation pays at a fixed amount when repaying a bond
principal
full-service broker
coverage limit
interest
35. The difference between a higher selling price and a lower purchase price - resulting in a financial gain for the seller
capital gain
universal default
Series EE Savings Bond
mutual funds
36. The practice of investing a fixed amount into the same investment at regular intervals - regardless of what the stock market is doing.
stock market
financial advisers
market risk
dollar cost average
37. Movement of money you receive and the money you spend
well-known discount brokers
cash flow
US Treasury Bills
permanent investment
38. An electronic machine that bank customers and credit union members can use to withdraw cash and make other financial transactions.
Series I Savings Bond
tax deferred
annuities
ATM - Automatic Teller Machine
39. Wall Street Journal and Barron's
bond
well-known financial newspapers
principal
US Treasury Bills
40. The amount of money someone is willing to loan you.
US Treasury Notes
Securities and Exchange Commission
share draft account
principal
41. Pooling of money from many investors to buy a large & diverse selection of securities
company risk
Investing
well-known discount brokers
mutual funds
42. A chosen pursuit - profession - or occupation
well-known discount brokers
non-market risk
career
strategic investing
43. Smaller decisions that can result from a major decision.
risk averse
municipal bonds
inflation
satellite decisions
44. Smaller decisions that can result from a major decision.
spending plan
satellite decisions
US Treasury Bills
financial advisers
45. A for-profit company that is owned by its stockholders and provides savings and checking accounts and other financial services to its customers.
yield
chapter 7
bank
strategic investing
46. The right & not the obligation & to buy or sell commodities or stocks for a specific price on a specific date
political risk
options
Series EE Savings Bond
real estate
47. Companies that provide extensive financial data to clients
share account
investor services
APR - Average Percentage Rate
universal default
48. Maximum amount of credit a lender will extend to a customer.
credit limit
market risk
real estate
well-known investor services
49. The willingness to give up something you want now in return for something better in the future.
risk taker
delayed gratification
US Treasury Bills
diversification
50. Bonds designed for investors wanting to protect again inflation losses
Series I Savings Bond
stock
periodic or occasional expenses
market risk