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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. Management of investment alternatives to maximize the growth of your portfolio
satellite decisions
spending plan
strategic investing
universal default
2. The value of What is given up when you choose one option over another.
annuities
values
opportunity cost
real estate
3. The entire amount of money you owe to lenders
career
annuities
debt
deductible
4. Bold and high-risk investments
origination fee
speculative investments
capital gain
budget
5. Amount of money that is set aside for future purchases
savings
stocks
put-and-take account
US Treasury Bills
6. A term that describes investments on which earnings are not taxed until retirement
Temporary investment
maturity date
tax deferred
variable expenses
7. The amount of a loss you must pay out of your own pocket before the insurance company will step in and pay the rest.
annual fee
well-known investor services
principal
deductible
8. Newspapers list of securities
social security tax
short term goal
annual fee
financial pages
9. Money used for short-term needs like emergencies; advisers recommend three to six months' net pay for set aside for this
well-know full-service brokers
wants
put-and-take account
dollar cost average
10. Merrill Lynch & Fidelity Investments & American Express
investor services
capital loss
satellite decisions
well-know full-service brokers
11. Discount bonds; a bond purchased for less than the maturity value; example you buy a $50 bond for $25
Series EE Savings Bond
maturity date
risk
ATM - Automatic Teller Machine
12. Is a numerical rating - based on credit report information that represents a person's level of creditworthiness
Investing
credit score
penny stocks
financial advisers
13. A bank account against which the depositor can draw checks payable on demand.
checking account
universal default
annuities
annuities
14. A financial institution owned by its members that provides savings and checking accounts and other services to its membership at low fees.
risk taker
grace period
US Treasury Bonds
credit union
15. A general and progressive increase in prices
ATM - Automatic Teller Machine
spending plan
inflation
maturity date
16. An amount that credit card companies can charge for the use of a credit card.
interest
satellite decisions
career
annual fee
17. Associated with owning stock of similar groups of businesses
interest
investor services
industry risk
dollar cost average
18. 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.
APR - Average Percentage Rate
satellite decisions
diversification
Rule of 72
19. The belief - qualities - or standards that you consider important or desirable.
diversification
values
chapter 13
well-known financial newspapers
20. Coins & art & memorabilia or other items that are popular from time to time
collectibles
well-know financial magazines
tax deferred
principal
21. A summary of a person's borrowing and repayment history.
bank
credit history
strategic investing
US Treasury Notes
22. A government sector that requires all public corporations to make annual reports available to their stockholders
Securities and Exchange Commission
stock market
deductible
diversification
23. A payroll deduction collected by employers by law and sent to the federal government to provide a small income and other services to the elderly - disabled Americans - and orphaned minors.
wants
spyware
stock
social security tax
24. Uncontrollable and unpredictable events that cause an investment to lose value
well-known investor services
risk
options
non-market risk
25. The belief - qualities - or standards that you consider important or desirable.
initial investing
savings account
values
well-know financial magazines
26. An electronic machine that bank customers and credit union members can use to withdraw cash and make other financial transactions.
ATM - Automatic Teller Machine
variable expenses
maturity date
origination fee
27. A summary of a person's borrowing and repayment history.
yield
career
credit history
checking account
28. 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.
spending plan
US Treasury Notes
savings account
financial pages
29. A formal contract to repay borrowed money with interest at fixed intervals
real estate
bond
well-known discount brokers
debit card
30. Earning interest on interest.
full-service broker
strategic investing
diversification
compounding interest rate
31. A fee charged to a borrower (especially for a mortgage loan) to cover the costs of initiating the loan.
municipal bonds
origination fee
political risk
annuities
32. Conservative investing; used when you have 'excess' savings
share draft account
portfolio
initial investing
systematic investing
33. Standard and Poor's and Moody's
opportunity cost
diversification
spyware
well-known investor services
34. Uncontrollable and unpredictable events that cause an investment to lose value
interest-rate risk
share draft account
non-market risk
risk averse
35. Investors who are afraid to make investments
risk averse
rate of return
Personal Identification Number - PIN
company risk
36. A detailed record of your personal credit and financial transactions.
credit report
Series EE Savings Bond
well-know financial magazines
cash flow
37. 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.
non-market risk
mutual fund
well-known discount brokers
Rule of 72
38. Standard and Poor's and Moody's
credit limit
well-known investor services
share account
well-known financial newspapers
39. Pooling of money from many investors to buy a large & diverse selection of securities
mutual funds
annual fee
annuities
chapter 7
40. The chance that inflation will rise faster than the rate of return on an investment
non-market risk
capital loss
spyware
interest-rate risk
41. A payroll deduction collected by employers by law and sent to the state government to support state services.
Series EE Savings Bond
rate of return
state income tax
well-known financial newspapers
42. Property consisting of houses and land
well-known investor services
corporate bonds
options
real estate
43. The willingness to give up something you want now in return for something better in the future.
delayed gratification
put-and-take account
career
yield
44. An electronic machine that bank customers and credit union members can use to withdraw cash and make other financial transactions.
share draft account
US Treasury Notes
ATM - Automatic Teller Machine
savings account
45. 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.'
annuities
debit card
rate of return
interest
46. The credit union term for a checking account.
share account
share draft account
real estate
risk taker
47. A clause included in many credit card company agreements that allows a credit card company to increase your interest rate if you make just one late payment.
savings account
debit card
universal default
credit history
48. Discount bonds; a bond purchased for less than the maturity value; example you buy a $50 bond for $25
credit union
inflation
mutual fund
Series EE Savings Bond
49. People trained to give investment advise based on your goals & age & lifestyle & etc
full-service broker
phishing
bankruptcy
financial advisers
50. Associated with owning stock of similar groups of businesses
market risk
industry risk
savings
risk averse