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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 government sector that requires all public corporations to make annual reports available to their stockholders
well-known financial newspapers
initial investing
discount brokers
Securities and Exchange Commission
2. US treasury security that matures in 30 years
credit union
investing risk
US Treasury Bonds
time value of money
3. The willingness to give up something you want now in return for something better in the future.
delayed gratification
credit history
investing risk
risk
4. A bank account against which the depositor can draw checks payable on demand.
checking account
annuities
career
discount brokers
5. A for-profit company that is owned by its stockholders and provides savings and checking accounts and other financial services to its customers.
credit union
corporate bonds
bank
yield
6. The value of What is given up when you choose one option over another.
opportunity cost
full-service broker
stock
annuities
7. The date on which the borrowed money must be repaid
maturity date
ATM - Automatic Teller Machine
values
company risk
8. Earning interest on interest.
spending plan
career
compounding interest rate
bond
9. The increase or decrease in the original purchase price of an investment over a period of time.
real estate
Series I Savings Bond
rate of return
variable expenses
10. Smaller decisions that can result from a major decision.
satellite decisions
well-known investor services
spyware
budget
11. Spreading risk among many types of investments; one way to minimize risk
phishing
Rule of 72
diversification
credit union
12. The credit union term for a checking account.
career
share draft account
principal
US Treasury Notes
13. Newspapers list of securities
universal default
political risk
Rule of 72
financial pages
14. The chance that inflation will rise faster than the rate of return on an investment
Personal Identification Number - PIN
credit score
dollar cost average
interest-rate risk
15. A form of bankruptcy that allows you to repay many of your debts over a period of time - usually no more than five years.
chapter 13
APR - Average Percentage Rate
well-know financial magazines
US Treasury Notes
16. The use of long-term savings to earn a financial return
satellite decisions
risk
debt
Investing
17. Investment choices that will be held for long periods
political risk
US Treasury Notes
permanent investment
interest-rate risk
18. Another term for budget
spending plan
annuities
annual report
periodic or occasional expenses
19. Coins & art & memorabilia or other items that are popular from time to time
industry risk
US Treasury Notes
collectibles
spyware
20. A for-profit company that is owned by its stockholders and provides savings and checking accounts and other financial services to its customers.
financial pages
yield
bank
real estate
21. A payroll deduction collected by employers by law and sent to the state government to support state services.
mutual fund
investor services
state income tax
principal
22. Bold and high-risk investments
well-known discount brokers
credit history
put-and-take account
speculative investments
23. Business Weekly & Forbes & Money
well-know financial magazines
budget
rate of return
futures
24. A fee charged to a borrower (especially for a mortgage loan) to cover the costs of initiating the loan.
time value of money
US Treasury Notes
origination fee
budget
25. A spending plan for managing money during a given period of time.
diversification
tax deferred
capital loss
budget
26. A formal contract to repay borrowed money with interest at fixed intervals
rate of return
bond
annuities
opportunity cost
27. A general and progressive increase in prices
rate of return
risk
delayed gratification
inflation
28. People trained to give investment advise based on your goals & age & lifestyle & etc
interest
financial advisers
interest-rate risk
systematic investing
29. The maximum amount an insurance company will pay if you file a claim.
company risk
coverage limit
rate of return
periodic or occasional expenses
30. Wall Street Journal and Barron's
well-known financial newspapers
spending plan
debit card
inflation
31. Maximum amount of credit a lender will extend to a customer.
debit card
Rule of 72
collectibles
credit limit
32. The right & not the obligation & to buy or sell commodities or stocks for a specific price on a specific date
checking account
share draft account
options
well-know full-service brokers
33. 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.'
credit score
well-known financial newspapers
debit card
checking account
34. The date on which the borrowed money must be repaid
well-know financial magazines
maturity date
credit limit
discount brokers
35. Contacts to buy and sell commodities or stocks for a specific price on a specific date
futures
pay yourself first - P.Y.F.
risk management
market risk
36. Movement of money you receive and the money you spend
cash flow
Investing
portfolio
annual report
37. Pooling of money from many investors to buy a large & diverse selection of securities
inflation
risk averse
mutual funds
debt
38. The amount of money someone is willing to loan you.
annuities
principal
corporate bonds
US Treasury Notes
39. A goal to be achieved within the next three months.
initial investing
speculative investments
short term goal
credit limit
40. The increase or decrease in the original purchase price of an investment over a period of time.
rate of return
credit union
tax deferred
well-know financial magazines
41. Amount of money that is set aside for future purchases
Rule of 72
bond
grace period
savings
42. Merrill Lynch & Fidelity Investments & American Express
bankruptcy
stock market
maturity date
well-know full-service brokers
43. A chosen pursuit - profession - or occupation
share account
principal
career
wants
44. The total amount of what it costs you to use credit in a given year. It is expressed as a percentage of the amount borrowed.
cash flow
collectibles
debt
APR - Average Percentage Rate
45. Amount of money that is set aside for future purchases
mutual funds
APR - Average Percentage Rate
credit union
savings
46. The chance that an investment's value will decrease
annual fee
grace period
investing risk
debit card
47. The difference between a higher selling price and a lower purchase price - resulting in a financial gain for the seller
annual report
full-service broker
penny stocks
capital gain
48. Actions that the government might take that would reduce the value of an investment
spending plan
savings
political risk
savings account
49. Brokers who provide clients with analysis and opinions
stock market
full-service broker
maturity date
savings account
50. Money used for short-term needs like emergencies; advisers recommend three to six months' net pay for set aside for this
time value of money
put-and-take account
share account
stock market