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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. Actions that the government might take that would reduce the value of an investment
grace period
portfolio
yield
political risk
2. Investors who take to take chances
risk taker
annual fee
budget
diversification
3. Associated with owning stock of similar groups of businesses
market risk
industry risk
state income tax
satellite decisions
4. Property consisting of houses and land
systematic investing
real estate
Personal Identification Number - PIN
Personal Identification Number - PIN
5. Wall Street Journal and Barron's
dollar cost average
mutual fund
well-known financial newspapers
debit card
6. Earning interest on interest.
short term goal
periodic or occasional expenses
strategic investing
compounding interest rate
7. Debt obligations of corporations
investor services
corporate bonds
credit limit
financial pages
8. 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.
checking account
credit limit
mutual fund
US Treasury Bonds
9. The increase or decrease in the original purchase price of an investment over a period of time.
political risk
discount brokers
interest
rate of return
10. The unique passcode number you use to get access to your savings and/or checking account
annual fee
options
wants
Personal Identification Number - PIN
11. The portion of the profits paid to the shareholders of a company.
dividend
Rule of 72
values
opportunity cost
12. Investors who are afraid to make investments
penny stocks
risk averse
values
ATM - Automatic Teller Machine
13. An account you have at a financial institution that helps you accumulate and save money and earn a small amount of interest at the same time.
municipal bonds
savings account
debt
yield
14. Contacts to buy and sell commodities or stocks for a specific price on a specific date
Series EE Savings Bond
futures
bond
deductible
15. The idea that money today is worth more than the same amount of money in the future due to its potential earning capacity.
principal
time value of money
universal default
risk taker
16. Amount of money that is set aside for future purchases
investor services
savings
well-known financial newspapers
diversification
17. A form of bankruptcy that allows you to repay many of your debts over a period of time - usually no more than five years.
savings account
credit union
maturity date
chapter 13
18. The credit union term for a savings account.
grace period
share account
bankruptcy
stock
19. Actions that the government might take that would reduce the value of an investment
political risk
bankruptcy
cash flow
company risk
20. Debt obligations of state or local governments
municipal bonds
risk
spending plan
risk
21. Business Weekly & Forbes & Money
capital loss
well-know financial magazines
bank
cash flow
22. The setting aside of money for future use or other investments
delayed gratification
market risk
pay yourself first - P.Y.F.
financial advisers
23. Reducing investment risk by putting money in several different types of investments.
stock
state income tax
diversification
Temporary investment
24. Is a numerical rating - based on credit report information that represents a person's level of creditworthiness
phishing
credit score
opportunity cost
deductible
25. The place where stocks are bought and sold.
universal default
stock market
maturity date
Securities and Exchange Commission
26. The date on which the borrowed money must be repaid
maturity date
variable expenses
speculative investments
spending plan
27. Property consisting of houses and land
market risk
spending plan
real estate
share draft account
28. Merrill Lynch & Fidelity Investments & American Express
Rule of 72
well-know full-service brokers
non-market risk
interest
29. The amount of a loss you must pay out of your own pocket before the insurance company will step in and pay the rest.
investing risk
company risk
delayed gratification
deductible
30. A detailed record of your personal credit and financial transactions.
credit report
spending plan
wants
portfolio
31. Conservative investing; used when you have 'excess' savings
initial investing
credit union
annual report
municipal bonds
32. A unit of ownership in a corporation
wants
stocks
universal default
bankruptcy
33. A technique to gain personal information for the purpose of identity theft - usually by means of fraudulent e-mail or pop-up messages.
satellite decisions
financial advisers
phishing
credit limit
34. The amount a corporation pays at a fixed amount when repaying a bond
collectibles
universal default
interest
cash flow
35. A financial institution owned by its members that provides savings and checking accounts and other services to its membership at low fees.
credit union
savings
risk taker
corporate bonds
36. Charles Schwab & TD Ameritrade & E*TRADE
short term goal
over-the-limit fee
state income tax
well-known discount brokers
37. A certificate documenting the shareholder's ownership in the corporation
credit score
non-market risk
cash flow
stock
38. Pooling of money from many investors to buy a large & diverse selection of securities
portfolio
principal
bank
mutual funds
39. Fee on credit card for making charges above your credit limit.
deductible
industry risk
Rule of 72
over-the-limit fee
40. Maximum amount of credit a lender will extend to a customer.
tax deferred
non-market risk
credit limit
share draft account
41. 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.
origination fee
bond
penny stocks
universal default
42. Uncontrollable and unpredictable events that cause an investment to lose value
speculative investments
non-market risk
investor services
chapter 7
43. People trained to give investment advise based on your goals & age & lifestyle & etc
interest
US Treasury Bills
financial advisers
compounding interest rate
44. The value of What is given up when you choose one option over another.
share draft account
opportunity cost
savings account
principal
45. Brokers who provided little or no information to clients
stock
discount brokers
well-know full-service brokers
phishing
46. People trained to give investment advise based on your goals & age & lifestyle & etc
credit score
inflation
APR - Average Percentage Rate
financial advisers
47. Movement of money you receive and the money you spend
well-known discount brokers
debit card
credit
cash flow
48. The credit union term for a checking account.
share draft account
short term goal
risk
over-the-limit fee
49. A technique used for estimating the number of years required to double your money at a given rate
credit union
periodic or occasional expenses
Rule of 72
financial pages
50. A government sector that requires all public corporations to make annual reports available to their stockholders
Securities and Exchange Commission
periodic or occasional expenses
US Treasury Bonds
strategic investing