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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 technique used for estimating the number of years required to double your money at a given rate
risk taker
periodic or occasional expenses
well-know financial magazines
Rule of 72
2. The process of dealing with the chance of a potential personal or financial loss.
dollar cost average
dollar cost average
risk management
pay yourself first - P.Y.F.
3. Amount of money that is set aside for future purchases
savings
social security tax
capital gain
credit
4. The credit union term for a savings account.
risk
share account
financial advisers
Personal Identification Number - PIN
5. An electronic machine that bank customers and credit union members can use to withdraw cash and make other financial transactions.
credit union
Investing
savings account
ATM - Automatic Teller Machine
6. The right & not the obligation & to buy or sell commodities or stocks for a specific price on a specific date
rate of return
cash flow
options
bank
7. Coins & art & memorabilia or other items that are popular from time to time
stock market
permanent investment
collectibles
variable expenses
8. Brokers who provided little or no information to clients
debit card
discount brokers
industry risk
speculative investments
9. Investors who are afraid to make investments
debt
risk averse
bond
chapter 13
10. A unit of ownership in a corporation
pay yourself first - P.Y.F.
US Treasury Notes
capital loss
stocks
11. 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.
Rule of 72
corporate bonds
periodic or occasional expenses
stock market
12. The entire amount of money you owe to lenders
debt
bond
values
non-market risk
13. Is a numerical rating - based on credit report information that represents a person's level of creditworthiness
futures
credit report
credit score
credit history
14. 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.
over-the-limit fee
principal
career
spyware
15. A bank account against which the depositor can draw checks payable on demand.
credit limit
credit
checking account
capital loss
16. A bank account against which the depositor can draw checks payable on demand.
checking account
mutual funds
coverage limit
share draft account
17. Expenses that are not fixed.
variable expenses
market risk
stock market
inflation
18. Pooling of money from many investors to buy a large & diverse selection of securities
bond
Securities and Exchange Commission
coverage limit
mutual funds
19. A for-profit company that is owned by its stockholders and provides savings and checking accounts and other financial services to its customers.
time value of money
bank
well-know financial magazines
interest
20. The belief - qualities - or standards that you consider important or desirable.
values
collectibles
bond
debit card
21. Money used for short-term needs like emergencies; advisers recommend three to six months' net pay for set aside for this
collectibles
put-and-take account
principal
credit history
22. 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
delayed gratification
capital gain
corporate bonds
23. Wall Street Journal and Barron's
tax deferred
spending plan
well-known financial newspapers
bank
24. The difference between a lower selling price and a higher purchase price resulting in a financial loss for the seller
capital loss
well-known investor services
real estate
bankruptcy
25. Investors who take to take chances
risk taker
well-known investor services
permanent investment
investing risk
26. Investors who are afraid to make investments
time value of money
spyware
APR - Average Percentage Rate
risk averse
27. People trained to give investment advise based on your goals & age & lifestyle & etc
non-market risk
values
financial advisers
share draft account
28. Actions that the government might take that would reduce the value of an investment
career
checking account
political risk
periodic or occasional expenses
29. A payroll deduction collected by employers by law and sent to the state government to support state services.
Temporary investment
origination fee
state income tax
mutual funds
30. Amount of money that is set aside for future purchases
share account
savings
Personal Identification Number - PIN
savings account
31. 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.
financial advisers
well-known investor services
delayed gratification
spyware
32. A term that describes investments on which earnings are not taxed until retirement
Series I Savings Bond
universal default
tax deferred
permanent investment
33. The profit from an investment.
systematic investing
Temporary investment
investing risk
yield
34. A chosen pursuit - profession - or occupation
career
US Treasury Notes
share account
opportunity cost
35. The use of long-term savings to earn a financial return
Investing
state income tax
credit score
risk averse
36. Regular and planned investments
investing risk
annual report
chapter 13
systematic investing
37. Pooling of money from many investors to buy a large & diverse selection of securities
full-service broker
compounding interest rate
Temporary investment
mutual funds
38. A form of bankruptcy that allows you to repay many of your debts over a period of time - usually no more than five years.
financial advisers
interest
chapter 13
deductible
39. On a credit card - the length of time you have before you start accumulating interest on an unpaid balance.
inflation
spyware
Rule of 72
grace period
40. A unit of ownership in a corporation
political risk
stocks
inflation
discount brokers
41. Brokers who provide clients with analysis and opinions
full-service broker
cash flow
well-known investor services
principal
42. Investment choices that will be re-evaluated within a year or less
well-known financial newspapers
initial investing
Temporary investment
stocks
43. Spreading risk among many types of investments; one way to minimize risk
diversification
US Treasury Notes
short term goal
bankruptcy
44. The place where stocks are bought and sold.
risk
stock market
Securities and Exchange Commission
origination fee
45. Money used for short-term needs like emergencies; advisers recommend three to six months' net pay for set aside for this
options
put-and-take account
chapter 13
Series EE Savings Bond
46. A formal contract to repay borrowed money with interest at fixed intervals
share draft account
periodic or occasional expenses
systematic investing
bond
47. 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.
well-known discount brokers
Securities and Exchange Commission
chapter 13
mutual fund
48. Newspapers list of securities
savings account
financial pages
political risk
well-known discount brokers
49. 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.'
diversification
satellite decisions
collectibles
debit card
50. Summary of a corporation's financial condition
annual report
Series EE Savings Bond
over-the-limit fee
annuities