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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. An amount of money that is loaned on trust with the expectation that it will be repaid at a later date.
initial investing
Series EE Savings Bond
credit
Rule of 72
2. A general and progressive increase in prices
penny stocks
checking account
annuities
inflation
3. Investors who take to take chances
savings account
delayed gratification
US Treasury Notes
risk taker
4. Standard and Poor's and Moody's
well-known investor services
Temporary investment
Investing
inflation
5. Companies that provide extensive financial data to clients
investor services
Series EE Savings Bond
risk
deductible
6. The chance that inflation will rise faster than the rate of return on an investment
bankruptcy
interest-rate risk
debt
well-know financial magazines
7. 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.'
rate of return
debit card
full-service broker
credit
8. Amount of money that is set aside for future purchases
risk
savings
investor services
systematic investing
9. Investing with a series of regular payments; usually associated with life insurance companies
annuities
systematic investing
put-and-take account
Rule of 72
10. The value of What is given up when you choose one option over another.
short term goal
opportunity cost
financial pages
well-known investor services
11. Contacts to buy and sell commodities or stocks for a specific price on a specific date
interest
yield
cash flow
futures
12. US treasury security that matures in 30 years
US Treasury Bonds
mutual funds
Temporary investment
portfolio
13. People trained to give investment advise based on your goals & age & lifestyle & etc
capital gain
spending plan
financial advisers
collectibles
14. A chosen pursuit - profession - or occupation
investor services
debit card
mutual fund
career
15. Bonds designed for investors wanting to protect again inflation losses
maturity date
well-known discount brokers
political risk
Series I Savings Bond
16. Associated with owning stock of similar groups of businesses
social security tax
municipal bonds
credit score
industry risk
17. Conservative investing; used when you have 'excess' savings
time value of money
initial investing
US Treasury Bonds
deductible
18. The amount of a loss you must pay out of your own pocket before the insurance company will step in and pay the rest.
municipal bonds
speculative investments
deductible
credit union
19. Pooling of money from many investors to buy a large & diverse selection of securities
real estate
financial pages
well-known discount brokers
mutual funds
20. Brokers who provide clients with analysis and opinions
over-the-limit fee
ATM - Automatic Teller Machine
chapter 13
full-service broker
21. Associated with owning stock of only one company
bankruptcy
debit card
company risk
full-service broker
22. Contacts to buy and sell commodities or stocks for a specific price on a specific date
futures
systematic investing
satellite decisions
collectibles
23. The difference between a lower selling price and a higher purchase price resulting in a financial loss for the seller
Rule of 72
risk averse
capital loss
bankruptcy
24. The setting aside of money for future use or other investments
savings account
systematic investing
pay yourself first - P.Y.F.
credit report
25. The belief - qualities - or standards that you consider important or desirable.
values
dividend
checking account
Securities and Exchange Commission
26. US treasury security that matures from a few days to one year
well-known financial newspapers
checking account
credit union
US Treasury Bills
27. Spreading risk among many types of investments; one way to minimize risk
initial investing
diversification
spending plan
Securities and Exchange Commission
28. The entire amount of money you owe to lenders
debt
Personal Identification Number - PIN
debit card
Rule of 72
29. Investment choices that will be re-evaluated within a year or less
permanent investment
values
principal
Temporary investment
30. A form of bankruptcy that allows you to erase most of your debt.
APR - Average Percentage Rate
credit union
chapter 7
diversification
31. Investors who are afraid to make investments
risk averse
municipal bonds
values
non-market risk
32. Bold and high-risk investments
credit report
speculative investments
corporate bonds
well-know financial magazines
33. Smaller decisions that can result from a major decision.
credit union
satellite decisions
diversification
well-known financial newspapers
34. The chance that an investment's value will decrease
speculative investments
market risk
tax deferred
investing risk
35. The unique passcode number you use to get access to your savings and/or checking account
US Treasury Bills
well-known discount brokers
Personal Identification Number - PIN
penny stocks
36. A government sector that requires all public corporations to make annual reports available to their stockholders
Series I Savings Bond
Rule of 72
Securities and Exchange Commission
full-service broker
37. Reducing investment risk by putting money in several different types of investments.
full-service broker
risk averse
diversification
portfolio
38. The credit union term for a checking account.
maturity date
mutual funds
Temporary investment
share draft account
39. The profit from an investment.
yield
budget
credit report
put-and-take account
40. An amount of money that is loaned on trust with the expectation that it will be repaid at a later date.
portfolio
Series I Savings Bond
risk management
credit
41. 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.
Personal Identification Number - PIN
Rule of 72
interest
ATM - Automatic Teller Machine
42. Merrill Lynch & Fidelity Investments & American Express
deductible
well-know full-service brokers
credit
corporate bonds
43. A technique used for estimating the number of years required to double your money at a given rate
savings
municipal bonds
inflation
Rule of 72
44. Associated with owning stock of only one company
credit history
principal
company risk
options
45. The place where stocks are bought and sold.
savings account
financial pages
rate of return
stock market
46. A summary of a person's borrowing and repayment history.
annuities
credit history
US Treasury Notes
capital gain
47. 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.
savings account
periodic or occasional expenses
capital gain
credit report
48. Spreading risk among many types of investments; one way to minimize risk
financial advisers
career
diversification
company risk
49. Investment choices that will be re-evaluated within a year or less
diversification
industry risk
interest
Temporary investment
50. The maximum amount an insurance company will pay if you file a claim.
chapter 13
interest-rate risk
coverage limit
investor services