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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. Things that add comfort and pleasure to your life but you can live without if you need to.
spyware
well-known discount brokers
wants
Series I Savings Bond
2. Expenses that aren't paid every month and can be either fixed or variable.
budget
short term goal
periodic or occasional expenses
mutual funds
3. Another term for budget
Securities and Exchange Commission
credit history
spyware
spending plan
4. US treasury security that matures in 2 & 5 & or 10 years
US Treasury Notes
initial investing
risk management
chapter 7
5. 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.
speculative investments
spyware
over-the-limit fee
inflation
6. Collection of investments
options
ATM - Automatic Teller Machine
portfolio
annual report
7. A spending plan for managing money during a given period of time.
Rule of 72
budget
portfolio
bank
8. The value of What is given up when you choose one option over another.
well-known investor services
US Treasury Bills
Series I Savings Bond
opportunity cost
9. The amount a corporation borrowed in a bond situation
stock market
principal
Personal Identification Number - PIN
bankruptcy
10. Collection of investments
portfolio
municipal bonds
risk averse
financial advisers
11. Debt obligations of corporations
credit limit
corporate bonds
municipal bonds
spyware
12. The chance that an investment's value will decrease
values
financial pages
investing risk
phishing
13. Investing with a series of regular payments; usually associated with life insurance companies
municipal bonds
Rule of 72
annuities
Series I Savings Bond
14. The use of long-term savings to earn a financial return
social security tax
cash flow
company risk
Investing
15. The increase or decrease in the original purchase price of an investment over a period of time.
cash flow
credit score
rate of return
annual report
16. Summary of a corporation's financial condition
annual report
real estate
futures
industry risk
17. Associated with owning stock of only one company
Personal Identification Number - PIN
company risk
social security tax
well-known financial newspapers
18. A detailed record of your personal credit and financial transactions.
spyware
bankruptcy
credit report
corporate bonds
19. Regular and planned investments
budget
time value of money
investing risk
systematic investing
20. The practice of investing a fixed amount into the same investment at regular intervals - regardless of what the stock market is doing.
dollar cost average
discount brokers
Securities and Exchange Commission
corporate bonds
21. A unit of ownership in a corporation
Temporary investment
US Treasury Notes
stocks
budget
22. Investment choices that will be re-evaluated within a year or less
company risk
Temporary investment
ATM - Automatic Teller Machine
credit report
23. US treasury security that matures from a few days to one year
risk averse
yield
capital gain
US Treasury Bills
24. Investment choices that will be held for long periods
APR - Average Percentage Rate
financial advisers
permanent investment
debt
25. The difference between a higher selling price and a lower purchase price - resulting in a financial gain for the seller
share account
financial advisers
credit report
capital gain
26. A formal contract to repay borrowed money with interest at fixed intervals
bond
industry risk
tax deferred
financial pages
27. On a credit card - the length of time you have before you start accumulating interest on an unpaid balance.
budget
spending plan
grace period
discount brokers
28. A chosen pursuit - profession - or occupation
stocks
career
risk
Temporary investment
29. A payroll deduction collected by employers by law and sent to the state government to support state services.
risk taker
state income tax
chapter 7
ATM - Automatic Teller Machine
30. Money used for short-term needs like emergencies; advisers recommend three to six months' net pay for set aside for this
collectibles
full-service broker
put-and-take account
debt
31. 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.'
put-and-take account
financial advisers
debit card
bank
32. The use of long-term savings to earn a financial return
full-service broker
Investing
debt
well-known investor services
33. An investment security that is actually a diversified portfolio of equities - bonds or other securities. Investors purchase shares and can sell them at any time.
credit history
non-market risk
principal
mutual fund
34. Brokers who provided little or no information to clients
discount brokers
risk management
corporate bonds
coverage limit
35. US treasury security that matures from a few days to one year
real estate
Personal Identification Number - PIN
US Treasury Bills
investing risk
36. Losses in an investment as a result of the business cycle
well-known investor services
market risk
career
credit
37. A government sector that requires all public corporations to make annual reports available to their stockholders
stock
state income tax
Securities and Exchange Commission
rate of return
38. Money used for short-term needs like emergencies; advisers recommend three to six months' net pay for set aside for this
wants
put-and-take account
risk management
chapter 7
39. Spreading risk among many types of investments; one way to minimize risk
diversification
penny stocks
state income tax
share draft account
40. Business Weekly & Forbes & Money
bank
well-know financial magazines
APR - Average Percentage Rate
capital loss
41. A legal process to get out of debt when you can no longer make all your required payments.
stock market
bankruptcy
collectibles
phishing
42. 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.
risk
spyware
political risk
risk averse
43. Charles Schwab & TD Ameritrade & E*TRADE
savings account
well-known discount brokers
Series I Savings Bond
credit report
44. The credit union term for a savings account.
annual fee
bankruptcy
share account
credit report
45. The belief - qualities - or standards that you consider important or desirable.
financial advisers
share account
values
non-market risk
46. Investors who are afraid to make investments
bank
financial pages
risk averse
cash flow
47. The date on which the borrowed money must be repaid
discount brokers
maturity date
well-known investor services
full-service broker
48. A certificate documenting the shareholder's ownership in the corporation
capital gain
stock
credit limit
savings
49. The profit from an investment.
yield
opportunity cost
variable expenses
interest
50. The willingness to give up something you want now in return for something better in the future.
capital gain
principal
delayed gratification
state income tax