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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. Business Weekly & Forbes & Money
well-know financial magazines
opportunity cost
company risk
financial advisers
2. The profit from an investment.
bankruptcy
short term goal
US Treasury Bills
yield
3. The increase or decrease in the original purchase price of an investment over a period of time.
corporate bonds
phishing
bankruptcy
rate of return
4. The process of dealing with the chance of a potential personal or financial loss.
wants
spending plan
risk management
put-and-take account
5. Another term for budget
spending plan
Securities and Exchange Commission
credit report
well-known investor services
6. The date on which the borrowed money must be repaid
dividend
phishing
maturity date
Rule of 72
7. A for-profit company that is owned by its stockholders and provides savings and checking accounts and other financial services to its customers.
US Treasury Notes
bank
savings account
bankruptcy
8. The right & not the obligation & to buy or sell commodities or stocks for a specific price on a specific date
chapter 7
options
Rule of 72
initial investing
9. The credit union term for a checking account.
share draft account
budget
debt
permanent investment
10. Summary of a corporation's financial condition
annual report
savings account
investing risk
social security tax
11. Brokers who provided little or no information to clients
checking account
credit union
US Treasury Bonds
discount brokers
12. The idea that money today is worth more than the same amount of money in the future due to its potential earning capacity.
coverage limit
periodic or occasional expenses
financial pages
time value of money
13. Debt obligations of state or local governments
financial pages
municipal bonds
diversification
compounding interest rate
14. A bank account against which the depositor can draw checks payable on demand.
bank
full-service broker
risk taker
checking account
15. The right & not the obligation & to buy or sell commodities or stocks for a specific price on a specific date
well-known financial newspapers
non-market risk
Series I Savings Bond
options
16. Reducing investment risk by putting money in several different types of investments.
dollar cost average
diversification
real estate
Series EE Savings Bond
17. An amount that credit card companies can charge for the use of a credit card.
annual fee
risk averse
full-service broker
risk taker
18. The chance that inflation will rise faster than the rate of return on an investment
Rule of 72
well-know financial magazines
interest-rate risk
chapter 13
19. A general and progressive increase in prices
well-know full-service brokers
inflation
financial advisers
Rule of 72
20. 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.
periodic or occasional expenses
penny stocks
Rule of 72
phishing
21. Things that add comfort and pleasure to your life but you can live without if you need to.
wants
bond
US Treasury Bonds
compounding interest rate
22. Coins & art & memorabilia or other items that are popular from time to time
investor services
interest-rate risk
collectibles
risk averse
23. A detailed record of your personal credit and financial transactions.
permanent investment
risk
full-service broker
credit report
24. Coins & art & memorabilia or other items that are popular from time to time
delayed gratification
yield
collectibles
credit union
25. A technique to gain personal information for the purpose of identity theft - usually by means of fraudulent e-mail or pop-up messages.
bank
bond
phishing
checking account
26. 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.
financial pages
Series I Savings Bond
APR - Average Percentage Rate
deductible
27. Investors who take to take chances
risk taker
credit report
yield
futures
28. The willingness to give up something you want now in return for something better in the future.
short term goal
bankruptcy
debt
delayed gratification
29. The belief - qualities - or standards that you consider important or desirable.
values
inflation
origination fee
well-know full-service brokers
30. The setting aside of money for future use or other investments
satellite decisions
financial pages
tax deferred
pay yourself first - P.Y.F.
31. A payroll deduction collected by employers by law and sent to the state government to support state services.
debt
real estate
yield
state income tax
32. Property consisting of houses and land
wants
satellite decisions
Securities and Exchange Commission
real estate
33. Investment choices that will be held for long periods
annual fee
well-known discount brokers
permanent investment
US Treasury Bills
34. A detailed record of your personal credit and financial transactions.
mutual funds
credit report
spending plan
principal
35. Maximum amount of credit a lender will extend to a customer.
state income tax
risk
credit limit
US Treasury Notes
36. 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.'
debit card
career
well-know full-service brokers
industry risk
37. A summary of a person's borrowing and repayment history.
credit history
grace period
capital gain
risk management
38. Summary of a corporation's financial condition
real estate
annual report
interest-rate risk
inflation
39. The difference between a higher selling price and a lower purchase price - resulting in a financial gain for the seller
ATM - Automatic Teller Machine
capital gain
risk
well-know financial magazines
40. An amount of money that is loaned on trust with the expectation that it will be repaid at a later date.
credit
savings account
bankruptcy
variable expenses
41. The credit union term for a savings account.
full-service broker
share account
Investing
interest-rate risk
42. Expenses that aren't paid every month and can be either fixed or variable.
market risk
bankruptcy
periodic or occasional expenses
savings account
43. Debt obligations of corporations
credit union
inflation
credit history
corporate bonds
44. The amount of money someone is willing to loan you.
annual report
penny stocks
principal
political risk
45. Bold and high-risk investments
state income tax
speculative investments
bank
well-known discount brokers
46. Investors who are afraid to make investments
career
stock market
annual fee
risk averse
47. Contacts to buy and sell commodities or stocks for a specific price on a specific date
rate of return
yield
futures
municipal bonds
48. An electronic machine that bank customers and credit union members can use to withdraw cash and make other financial transactions.
dividend
debit card
ATM - Automatic Teller Machine
investor services
49. 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.
spyware
dividend
deductible
full-service broker
50. The credit union term for a savings account.
share account
periodic or occasional expenses
short term goal
satellite decisions