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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. A technique used for estimating the number of years required to double your money at a given rate
phishing
annual fee
Rule of 72
dollar cost average
2. The date on which the borrowed money must be repaid
Personal Identification Number - PIN
cash flow
investing risk
maturity date
3. The use of long-term savings to earn a financial return
APR - Average Percentage Rate
Investing
dividend
debt
4. A legal process to get out of debt when you can no longer make all your required payments.
futures
yield
bankruptcy
over-the-limit fee
5. The right & not the obligation & to buy or sell commodities or stocks for a specific price on a specific date
annual fee
options
spending plan
dollar cost average
6. A form of bankruptcy that allows you to repay many of your debts over a period of time - usually no more than five years.
rate of return
share account
municipal bonds
chapter 13
7. The credit union term for a savings account.
financial pages
principal
share account
dollar cost average
8. Collection of investments
career
annuities
portfolio
maturity date
9. The amount of money someone is willing to loan you.
principal
universal default
yield
permanent investment
10. Bold and high-risk investments
speculative investments
systematic investing
capital loss
principal
11. 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.
checking account
chapter 7
wants
spyware
12. The place where stocks are bought and sold.
over-the-limit fee
corporate bonds
stock market
principal
13. A legal process to get out of debt when you can no longer make all your required payments.
financial advisers
bankruptcy
state income tax
company risk
14. A unit of ownership in a corporation
Rule of 72
well-known discount brokers
stocks
well-know full-service brokers
15. A term that describes investments on which earnings are not taxed until retirement
variable expenses
credit union
tax deferred
credit
16. Charles Schwab & TD Ameritrade & E*TRADE
well-known discount brokers
chapter 13
credit report
risk averse
17. The difference between a lower selling price and a higher purchase price resulting in a financial loss for the seller
Series I Savings Bond
capital loss
origination fee
futures
18. An electronic machine that bank customers and credit union members can use to withdraw cash and make other financial transactions.
permanent investment
ATM - Automatic Teller Machine
inflation
corporate bonds
19. A certificate documenting the shareholder's ownership in the corporation
stock
political risk
spending plan
principal
20. The setting aside of money for future use or other investments
penny stocks
coverage limit
dividend
pay yourself first - P.Y.F.
21. Reducing investment risk by putting money in several different types of investments.
time value of money
well-know financial magazines
diversification
state income tax
22. Companies that provide extensive financial data to clients
interest-rate risk
investor services
yield
annual fee
23. A chosen pursuit - profession - or occupation
career
chapter 13
bank
savings account
24. Pooling of money from many investors to buy a large & diverse selection of securities
interest-rate risk
variable expenses
mutual funds
credit report
25. Associated with owning stock of similar groups of businesses
universal default
chapter 13
political risk
industry risk
26. A form of bankruptcy that allows you to erase most of your debt.
origination fee
credit history
spyware
chapter 7
27. Collection of investments
savings account
credit score
maturity date
portfolio
28. The profit from an investment.
well-known financial newspapers
risk
yield
political risk
29. 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.
mutual fund
credit history
interest-rate risk
maturity date
30. Standard and Poor's and Moody's
values
well-known investor services
initial investing
credit
31. Spreading risk among many types of investments; one way to minimize risk
credit limit
opportunity cost
financial pages
diversification
32. A fee charged to a borrower (especially for a mortgage loan) to cover the costs of initiating the loan.
phishing
origination fee
financial advisers
interest
33. Associated with owning stock of only one company
credit history
Series I Savings Bond
financial pages
company risk
34. Merrill Lynch & Fidelity Investments & American Express
budget
spending plan
debt
well-know full-service brokers
35. Losses in an investment as a result of the business cycle
Securities and Exchange Commission
collectibles
market risk
budget
36. Discount bonds; a bond purchased for less than the maturity value; example you buy a $50 bond for $25
diversification
Series EE Savings Bond
investing risk
systematic investing
37. Earning interest on interest.
compounding interest rate
periodic or occasional expenses
well-know financial magazines
municipal bonds
38. The increase or decrease in the original purchase price of an investment over a period of time.
diversification
rate of return
market risk
annual report
39. Regular and planned investments
systematic investing
capital loss
financial pages
credit history
40. Conservative investing; used when you have 'excess' savings
annual fee
Series I Savings Bond
debt
initial investing
41. The credit union term for a checking account.
share draft account
risk
political risk
credit limit
42. Investing with a series of regular payments; usually associated with life insurance companies
over-the-limit fee
yield
annuities
industry risk
43. Debt obligations of state or local governments
well-know full-service brokers
stocks
municipal bonds
systematic investing
44. Investment choices that will be re-evaluated within a year or less
opportunity cost
municipal bonds
Temporary investment
stocks
45. 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.
risk
values
savings account
debit card
46. The amount of money someone is willing to loan you.
credit score
well-know financial magazines
values
principal
47. An electronic machine that bank customers and credit union members can use to withdraw cash and make other financial transactions.
Series EE Savings Bond
deductible
grace period
ATM - Automatic Teller Machine
48. The practice of investing a fixed amount into the same investment at regular intervals - regardless of what the stock market is doing.
company risk
maturity date
Investing
dollar cost average
49. The idea that money today is worth more than the same amount of money in the future due to its potential earning capacity.
credit limit
well-known discount brokers
dollar cost average
time value of money
50. Amount of money that is set aside for future purchases
savings
US Treasury Notes
compounding interest rate
futures