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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 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.
dollar cost average
stock
social security tax
industry risk
2. A certificate documenting the shareholder's ownership in the corporation
career
satellite decisions
stock
investor services
3. An amount of money that is loaned on trust with the expectation that it will be repaid at a later date.
credit
permanent investment
US Treasury Notes
credit report
4. A payroll deduction collected by employers by law and sent to the state government to support state services.
state income tax
credit union
cash flow
Temporary investment
5. A government sector that requires all public corporations to make annual reports available to their stockholders
Rule of 72
investor services
Securities and Exchange Commission
risk averse
6. Smaller decisions that can result from a major decision.
phishing
risk taker
annual fee
satellite decisions
7. Brokers who provided little or no information to clients
principal
Series I Savings Bond
risk
discount brokers
8. A fee charged to a borrower (especially for a mortgage loan) to cover the costs of initiating the loan.
origination fee
non-market risk
well-know financial magazines
well-know financial magazines
9. Investors who take to take chances
portfolio
career
checking account
risk taker
10. The amount a corporation pays at a fixed amount when repaying a bond
over-the-limit fee
interest
annuities
Personal Identification Number - PIN
11. Fee on credit card for making charges above your credit limit.
municipal bonds
checking account
career
over-the-limit fee
12. A formal contract to repay borrowed money with interest at fixed intervals
risk
annual report
bond
capital loss
13. The probability that injury - damage - or loss will occur.
risk
APR - Average Percentage Rate
investing risk
time value of money
14. Uncontrollable and unpredictable events that cause an investment to lose value
Temporary investment
capital gain
capital gain
non-market risk
15. A unit of ownership in a corporation
annual fee
put-and-take account
Series I Savings Bond
stocks
16. A technique used for estimating the number of years required to double your money at a given rate
political risk
credit report
Rule of 72
chapter 13
17. The use of long-term savings to earn a financial return
Investing
capital gain
well-known investor services
interest-rate risk
18. A formal contract to repay borrowed money with interest at fixed intervals
diversification
market risk
bond
time value of money
19. A detailed record of your personal credit and financial transactions.
checking account
credit report
Securities and Exchange Commission
investing risk
20. Newspapers list of securities
delayed gratification
financial pages
dividend
debt
21. Smaller decisions that can result from a major decision.
well-known investor services
collectibles
satellite decisions
maturity date
22. Is a numerical rating - based on credit report information that represents a person's level of creditworthiness
real estate
credit score
opportunity cost
diversification
23. The difference between a lower selling price and a higher purchase price resulting in a financial loss for the seller
non-market risk
US Treasury Bonds
Investing
capital loss
24. An electronic machine that bank customers and credit union members can use to withdraw cash and make other financial transactions.
stock
real estate
debit card
ATM - Automatic Teller Machine
25. Investors who are afraid to make investments
well-know financial magazines
risk averse
diversification
rate of return
26. Charles Schwab & TD Ameritrade & E*TRADE
well-known discount brokers
market risk
origination fee
inflation
27. An amount that credit card companies can charge for the use of a credit card.
satellite decisions
annual fee
credit score
interest
28. The amount a corporation pays at a fixed amount when repaying a bond
cash flow
interest
penny stocks
stock market
29. A government sector that requires all public corporations to make annual reports available to their stockholders
risk averse
diversification
rate of return
Securities and Exchange Commission
30. A technique to gain personal information for the purpose of identity theft - usually by means of fraudulent e-mail or pop-up messages.
phishing
Series EE Savings Bond
diversification
pay yourself first - P.Y.F.
31. The value of What is given up when you choose one option over another.
risk averse
futures
yield
opportunity cost
32. Conservative investing; used when you have 'excess' savings
dollar cost average
initial investing
risk averse
credit
33. Newspapers list of securities
financial pages
maturity date
capital gain
bankruptcy
34. The unique passcode number you use to get access to your savings and/or checking account
non-market risk
real estate
Personal Identification Number - PIN
annual fee
35. Actions that the government might take that would reduce the value of an investment
well-known discount brokers
interest-rate risk
political risk
chapter 7
36. The setting aside of money for future use or other investments
financial advisers
pay yourself first - P.Y.F.
Securities and Exchange Commission
Personal Identification Number - PIN
37. Another term for budget
interest-rate risk
ATM - Automatic Teller Machine
spending plan
diversification
38. Debt obligations of state or local governments
US Treasury Bonds
wants
stock market
municipal bonds
39. Low-priced stocks of small companies that have no track record
Rule of 72
penny stocks
well-known discount brokers
Series EE Savings Bond
40. The credit union term for a checking account.
Rule of 72
investor services
stock market
share draft account
41. Collection of investments
financial advisers
stock market
portfolio
annual fee
42. The place where stocks are bought and sold.
interest
credit union
Securities and Exchange Commission
stock market
43. 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
bankruptcy
credit report
state income tax
44. Losses in an investment as a result of the business cycle
industry risk
market risk
credit union
spyware
45. Discount bonds; a bond purchased for less than the maturity value; example you buy a $50 bond for $25
stock
Series EE Savings Bond
initial investing
values
46. A certificate documenting the shareholder's ownership in the corporation
stock
bankruptcy
US Treasury Bonds
APR - Average Percentage Rate
47. Investors who are afraid to make investments
bond
US Treasury Bonds
time value of money
risk averse
48. Investment choices that will be re-evaluated within a year or less
US Treasury Bonds
futures
market risk
Temporary investment
49. The amount of money someone is willing to loan you.
principal
cash flow
investor services
permanent investment
50. Debt obligations of corporations
Personal Identification Number - PIN
corporate bonds
wants
diversification