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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 unit of ownership in a corporation
stocks
interest
well-know financial magazines
debt
2. The credit union term for a savings account.
share account
stocks
full-service broker
market risk
3. The date on which the borrowed money must be repaid
risk
maturity date
interest
real estate
4. The portion of the profits paid to the shareholders of a company.
systematic investing
time value of money
career
dividend
5. The process of dealing with the chance of a potential personal or financial loss.
tax deferred
collectibles
APR - Average Percentage Rate
risk management
6. The difference between a higher selling price and a lower purchase price - resulting in a financial gain for the seller
Series I Savings Bond
stocks
mutual fund
capital gain
7. The increase or decrease in the original purchase price of an investment over a period of time.
political risk
rate of return
chapter 7
credit history
8. Expenses that aren't paid every month and can be either fixed or variable.
company risk
periodic or occasional expenses
political risk
US Treasury Notes
9. Associated with owning stock of only one company
stocks
Personal Identification Number - PIN
diversification
company risk
10. Brokers who provided little or no information to clients
checking account
discount brokers
stock market
stock market
11. A form of bankruptcy that allows you to repay many of your debts over a period of time - usually no more than five years.
grace period
checking account
chapter 13
collectibles
12. 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.
Rule of 72
dollar cost average
compounding interest rate
well-known discount brokers
13. A technique used for estimating the number of years required to double your money at a given rate
annual fee
chapter 13
Rule of 72
stock
14. A bank account against which the depositor can draw checks payable on demand.
checking account
bankruptcy
debt
yield
15. Pooling of money from many investors to buy a large & diverse selection of securities
stocks
mutual funds
phishing
values
16. Money used for short-term needs like emergencies; advisers recommend three to six months' net pay for set aside for this
annual report
pay yourself first - P.Y.F.
put-and-take account
futures
17. Charles Schwab & TD Ameritrade & E*TRADE
well-known discount brokers
Temporary investment
financial pages
Series I Savings Bond
18. A for-profit company that is owned by its stockholders and provides savings and checking accounts and other financial services to its customers.
periodic or occasional expenses
credit
bank
risk taker
19. The practice of investing a fixed amount into the same investment at regular intervals - regardless of what the stock market is doing.
ATM - Automatic Teller Machine
spyware
dollar cost average
spending plan
20. Investment choices that will be held for long periods
credit limit
credit history
credit report
permanent investment
21. A spending plan for managing money during a given period of time.
put-and-take account
well-known discount brokers
Series EE Savings Bond
budget
22. A summary of a person's borrowing and repayment history.
career
well-know full-service brokers
investor services
credit history
23. The entire amount of money you owe to lenders
debt
cash flow
Series I Savings Bond
satellite decisions
24. A summary of a person's borrowing and repayment history.
credit history
share account
investing risk
well-known discount brokers
25. A government sector that requires all public corporations to make annual reports available to their stockholders
US Treasury Bills
Securities and Exchange Commission
options
penny stocks
26. The setting aside of money for future use or other investments
Series EE Savings Bond
pay yourself first - P.Y.F.
universal default
origination fee
27. An amount of money that is loaned on trust with the expectation that it will be repaid at a later date.
chapter 7
municipal bonds
credit
Rule of 72
28. A financial institution owned by its members that provides savings and checking accounts and other services to its membership at low fees.
spyware
credit limit
short term goal
credit union
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.
chapter 13
spending plan
non-market risk
mutual fund
30. The amount of money someone is willing to loan you.
time value of money
risk averse
full-service broker
principal
31. Maximum amount of credit a lender will extend to a customer.
credit limit
credit
coverage limit
dividend
32. A for-profit company that is owned by its stockholders and provides savings and checking accounts and other financial services to its customers.
chapter 7
yield
bank
share account
33. A formal contract to repay borrowed money with interest at fixed intervals
US Treasury Bonds
futures
delayed gratification
bond
34. Money used for short-term needs like emergencies; advisers recommend three to six months' net pay for set aside for this
spyware
put-and-take account
chapter 13
yield
35. Earning interest on interest.
universal default
compounding interest rate
discount brokers
share draft account
36. Business Weekly & Forbes & Money
short term goal
debit card
delayed gratification
well-know financial magazines
37. Regular and planned investments
dividend
systematic investing
chapter 7
market risk
38. A formal contract to repay borrowed money with interest at fixed intervals
chapter 13
tax deferred
bond
origination fee
39. The use of long-term savings to earn a financial return
Investing
well-known financial newspapers
grace period
debt
40. A form of bankruptcy that allows you to repay many of your debts over a period of time - usually no more than five years.
state income tax
chapter 13
well-know full-service brokers
rate of return
41. Things that add comfort and pleasure to your life but you can live without if you need to.
spyware
wants
company risk
Series I Savings Bond
42. Things that add comfort and pleasure to your life but you can live without if you need to.
delayed gratification
investor services
over-the-limit fee
wants
43. People trained to give investment advise based on your goals & age & lifestyle & etc
interest
bank
company risk
financial advisers
44. Associated with owning stock of similar groups of businesses
industry risk
spyware
credit limit
speculative investments
45. Pooling of money from many investors to buy a large & diverse selection of securities
capital gain
mutual funds
values
delayed gratification
46. US treasury security that matures in 2 & 5 & or 10 years
Rule of 72
diversification
Personal Identification Number - PIN
US Treasury Notes
47. The credit union term for a checking account.
penny stocks
bond
strategic investing
share draft account
48. Discount bonds; a bond purchased for less than the maturity value; example you buy a $50 bond for $25
share draft account
Series EE Savings Bond
Rule of 72
budget
49. The chance that an investment's value will decrease
annuities
mutual funds
risk averse
investing risk
50. Movement of money you receive and the money you spend
municipal bonds
cash flow
spyware
annual fee