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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 date on which the borrowed money must be repaid
Series EE Savings Bond
credit union
principal
maturity date
2. Another term for budget
credit score
well-know full-service brokers
savings account
spending plan
3. The process of dealing with the chance of a potential personal or financial loss.
stock market
time value of money
delayed gratification
risk management
4. The difference between a lower selling price and a higher purchase price resulting in a financial loss for the seller
dividend
capital loss
stock market
portfolio
5. Bonds designed for investors wanting to protect again inflation losses
options
time value of money
US Treasury Notes
Series I Savings Bond
6. Spreading risk among many types of investments; one way to minimize risk
career
diversification
time value of money
budget
7. Discount bonds; a bond purchased for less than the maturity value; example you buy a $50 bond for $25
US Treasury Bills
bankruptcy
risk averse
Series EE Savings Bond
8. The belief - qualities - or standards that you consider important or desirable.
origination fee
credit
US Treasury Bonds
values
9. Associated with owning stock of only one company
company risk
checking account
spyware
interest-rate risk
10. The idea that money today is worth more than the same amount of money in the future due to its potential earning capacity.
pay yourself first - P.Y.F.
state income tax
compounding interest rate
time value of money
11. Things that add comfort and pleasure to your life but you can live without if you need to.
Securities and Exchange Commission
wants
Rule of 72
discount brokers
12. The maximum amount an insurance company will pay if you file a claim.
annual report
diversification
investor services
coverage limit
13. On a credit card - the length of time you have before you start accumulating interest on an unpaid balance.
Rule of 72
grace period
investing risk
career
14. A technique to gain personal information for the purpose of identity theft - usually by means of fraudulent e-mail or pop-up messages.
risk
phishing
values
speculative investments
15. The amount of money someone is willing to loan you.
dollar cost average
principal
Securities and Exchange Commission
savings
16. The chance that inflation will rise faster than the rate of return on an investment
interest-rate risk
Series EE Savings Bond
delayed gratification
Rule of 72
17. A form of bankruptcy that allows you to erase most of your debt.
real estate
diversification
chapter 7
investor services
18. Debt obligations of state or local governments
risk management
time value of money
municipal bonds
risk averse
19. Uncontrollable and unpredictable events that cause an investment to lose value
well-known financial newspapers
non-market risk
Investing
options
20. Expenses that aren't paid every month and can be either fixed or variable.
compounding interest rate
periodic or occasional expenses
share draft account
APR - Average Percentage Rate
21. Money used for short-term needs like emergencies; advisers recommend three to six months' net pay for set aside for this
put-and-take account
bankruptcy
diversification
spending plan
22. The increase or decrease in the original purchase price of an investment over a period of time.
coverage limit
Securities and Exchange Commission
maturity date
rate of return
23. A for-profit company that is owned by its stockholders and provides savings and checking accounts and other financial services to its customers.
non-market risk
initial investing
investor services
bank
24. Movement of money you receive and the money you spend
US Treasury Bills
cash flow
mutual funds
savings account
25. The value of What is given up when you choose one option over another.
coverage limit
opportunity cost
Securities and Exchange Commission
Series I Savings Bond
26. Conservative investing; used when you have 'excess' savings
initial investing
political risk
well-known financial newspapers
APR - Average Percentage Rate
27. The difference between a higher selling price and a lower purchase price - resulting in a financial gain for the seller
capital gain
Rule of 72
Temporary investment
maturity date
28. The probability that injury - damage - or loss will occur.
compounding interest rate
social security tax
dollar cost average
risk
29. US treasury security that matures in 2 & 5 & or 10 years
US Treasury Notes
investing risk
dollar cost average
risk management
30. The entire amount of money you owe to lenders
credit history
Rule of 72
debt
share draft account
31. Summary of a corporation's financial condition
Series I Savings Bond
annual report
well-known investor services
bank
32. Smaller decisions that can result from a major decision.
debt
permanent investment
satellite decisions
spyware
33. A government sector that requires all public corporations to make annual reports available to their stockholders
annual report
maturity date
Securities and Exchange Commission
spyware
34. A financial institution owned by its members that provides savings and checking accounts and other services to its membership at low fees.
credit union
pay yourself first - P.Y.F.
credit history
inflation
35. Low-priced stocks of small companies that have no track record
bankruptcy
risk averse
penny stocks
satellite decisions
36. Expenses that are not fixed.
career
variable expenses
principal
checking account
37. A form of bankruptcy that allows you to erase most of your debt.
chapter 7
financial pages
compounding interest rate
state income tax
38. The use of long-term savings to earn a financial return
Investing
US Treasury Bills
US Treasury Notes
capital gain
39. Contacts to buy and sell commodities or stocks for a specific price on a specific date
municipal bonds
bond
futures
periodic or occasional expenses
40. People trained to give investment advise based on your goals & age & lifestyle & etc
Rule of 72
options
financial advisers
mutual fund
41. Expenses that aren't paid every month and can be either fixed or variable.
periodic or occasional expenses
well-known discount brokers
Investing
values
42. A spending plan for managing money during a given period of time.
financial advisers
APR - Average Percentage Rate
budget
bank
43. A detailed record of your personal credit and financial transactions.
Investing
share draft account
checking account
credit report
44. Actions that the government might take that would reduce the value of an investment
capital gain
political risk
share draft account
well-known discount brokers
45. Money used for short-term needs like emergencies; advisers recommend three to six months' net pay for set aside for this
put-and-take account
US Treasury Bonds
grace period
non-market risk
46. US treasury security that matures in 30 years
systematic investing
yield
US Treasury Bonds
social security tax
47. An electronic machine that bank customers and credit union members can use to withdraw cash and make other financial transactions.
Personal Identification Number - PIN
share account
ATM - Automatic Teller Machine
budget
48. Associated with owning stock of only one company
Rule of 72
stocks
company risk
investing risk
49. The willingness to give up something you want now in return for something better in the future.
risk averse
share draft account
checking account
delayed gratification
50. The increase or decrease in the original purchase price of an investment over a period of time.
investor services
diversification
yield
rate of return