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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. Investment choices that will be held for long periods
well-known investor services
permanent investment
social security tax
risk
2. Maximum amount of credit a lender will extend to a customer.
credit limit
investing risk
investor services
investor services
3. Management of investment alternatives to maximize the growth of your portfolio
interest
futures
strategic investing
real estate
4. Amount of money that is set aside for future purchases
real estate
mutual funds
systematic investing
savings
5. A bank account against which the depositor can draw checks payable on demand.
over-the-limit fee
credit score
checking account
market risk
6. The willingness to give up something you want now in return for something better in the future.
credit
deductible
delayed gratification
annual report
7. Debt obligations of corporations
corporate bonds
US Treasury Notes
credit limit
Series I Savings Bond
8. The difference between a lower selling price and a higher purchase price resulting in a financial loss for the seller
credit history
capital loss
well-known investor services
Rule of 72
9. The amount of a loss you must pay out of your own pocket before the insurance company will step in and pay the rest.
put-and-take account
mutual fund
deductible
corporate bonds
10. Reducing investment risk by putting money in several different types of investments.
diversification
annual report
spyware
well-know full-service brokers
11. Wall Street Journal and Barron's
compounding interest rate
well-known financial newspapers
risk
savings
12. Actions that the government might take that would reduce the value of an investment
futures
systematic investing
political risk
chapter 13
13. A legal process to get out of debt when you can no longer make all your required payments.
short term goal
chapter 7
bankruptcy
career
14. Smaller decisions that can result from a major decision.
Rule of 72
interest
Personal Identification Number - PIN
satellite decisions
15. Uncontrollable and unpredictable events that cause an investment to lose value
non-market risk
options
debit card
budget
16. A for-profit company that is owned by its stockholders and provides savings and checking accounts and other financial services to its customers.
variable expenses
bank
full-service broker
well-know financial magazines
17. 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.
social security tax
cash flow
spending plan
coverage limit
18. Charles Schwab & TD Ameritrade & E*TRADE
well-known investor services
Securities and Exchange Commission
risk averse
well-known discount brokers
19. The amount of a loss you must pay out of your own pocket before the insurance company will step in and pay the rest.
deductible
compounding interest rate
well-know financial magazines
values
20. Amount of money that is set aside for future purchases
Temporary investment
annuities
put-and-take account
savings
21. The use of long-term savings to earn a financial return
debt
Investing
diversification
credit report
22. Brokers who provide clients with analysis and opinions
satellite decisions
full-service broker
strategic investing
investor services
23. The place where stocks are bought and sold.
budget
well-known investor services
bond
stock market
24. A unit of ownership in a corporation
futures
stocks
mutual funds
coverage limit
25. The unique passcode number you use to get access to your savings and/or checking account
inflation
tax deferred
real estate
Personal Identification Number - PIN
26. The value of What is given up when you choose one option over another.
well-know financial magazines
grace period
opportunity cost
values
27. The amount a corporation pays at a fixed amount when repaying a bond
interest-rate risk
interest
speculative investments
options
28. The portion of the profits paid to the shareholders of a company.
variable expenses
US Treasury Bills
dividend
well-know full-service brokers
29. Money used for short-term needs like emergencies; advisers recommend three to six months' net pay for set aside for this
market risk
well-know financial magazines
options
put-and-take account
30. Coins & art & memorabilia or other items that are popular from time to time
ATM - Automatic Teller Machine
coverage limit
collectibles
non-market risk
31. The willingness to give up something you want now in return for something better in the future.
delayed gratification
interest-rate risk
initial investing
US Treasury Bonds
32. Associated with owning stock of only one company
company risk
mutual fund
credit history
tax deferred
33. A formal contract to repay borrowed money with interest at fixed intervals
short term goal
phishing
initial investing
bond
34. The date on which the borrowed money must be repaid
interest
share account
annual fee
maturity date
35. 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.
full-service broker
corporate bonds
ATM - Automatic Teller Machine
universal default
36. A certificate documenting the shareholder's ownership in the corporation
interest
Rule of 72
rate of return
stock
37. A for-profit company that is owned by its stockholders and provides savings and checking accounts and other financial services to its customers.
portfolio
well-known investor services
systematic investing
bank
38. The practice of investing a fixed amount into the same investment at regular intervals - regardless of what the stock market is doing.
Rule of 72
initial investing
short term goal
dollar cost average
39. A technique used for estimating the number of years required to double your money at a given rate
stock
social security tax
risk averse
Rule of 72
40. Brokers who provided little or no information to clients
penny stocks
pay yourself first - P.Y.F.
discount brokers
spending plan
41. Actions that the government might take that would reduce the value of an investment
credit limit
over-the-limit fee
political risk
systematic investing
42. Money used for short-term needs like emergencies; advisers recommend three to six months' net pay for set aside for this
interest
put-and-take account
bankruptcy
credit score
43. An electronic machine that bank customers and credit union members can use to withdraw cash and make other financial transactions.
well-known discount brokers
ATM - Automatic Teller Machine
speculative investments
yield
44. 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.'
risk management
debit card
coverage limit
strategic investing
45. A goal to be achieved within the next three months.
well-known financial newspapers
short term goal
interest
credit limit
46. Bold and high-risk investments
universal default
Rule of 72
speculative investments
well-known financial newspapers
47. The probability that injury - damage - or loss will occur.
checking account
inflation
credit
risk
48. Earning interest on interest.
compounding interest rate
over-the-limit fee
savings
bankruptcy
49. Losses in an investment as a result of the business cycle
non-market risk
market risk
interest
Temporary investment
50. Regular and planned investments
mutual fund
risk taker
principal
systematic investing