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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 state government to support state services.
opportunity cost
well-known investor services
credit history
state income tax
2. The profit from an investment.
wants
dollar cost average
mutual funds
yield
3. The use of long-term savings to earn a financial return
coverage limit
well-known financial newspapers
Investing
bankruptcy
4. A bank account against which the depositor can draw checks payable on demand.
checking account
annual fee
initial investing
credit limit
5. The belief - qualities - or standards that you consider important or desirable.
initial investing
portfolio
values
principal
6. A technique to gain personal information for the purpose of identity theft - usually by means of fraudulent e-mail or pop-up messages.
social security tax
phishing
share account
ATM - Automatic Teller Machine
7. The credit union term for a savings account.
political risk
share account
capital gain
bankruptcy
8. 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.
US Treasury Bills
APR - Average Percentage Rate
phishing
industry risk
9. Amount of money that is set aside for future purchases
savings
financial pages
principal
Personal Identification Number - PIN
10. The portion of the profits paid to the shareholders of a company.
cash flow
wants
dividend
credit history
11. 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.
pay yourself first - P.Y.F.
systematic investing
mutual fund
origination fee
12. Collection of investments
portfolio
compounding interest rate
coverage limit
company risk
13. Expenses that are not fixed.
Rule of 72
variable expenses
discount brokers
non-market risk
14. The willingness to give up something you want now in return for something better in the future.
full-service broker
delayed gratification
over-the-limit fee
tax deferred
15. The chance that inflation will rise faster than the rate of return on an investment
interest-rate risk
well-know financial magazines
spyware
risk
16. Reducing investment risk by putting money in several different types of investments.
credit score
bond
diversification
capital loss
17. The amount of money someone is willing to loan you.
Temporary investment
Investing
origination fee
principal
18. Uncontrollable and unpredictable events that cause an investment to lose value
US Treasury Notes
opportunity cost
periodic or occasional expenses
non-market risk
19. A goal to be achieved within the next three months.
municipal bonds
short term goal
well-know financial magazines
interest
20. Business Weekly & Forbes & Money
universal default
deductible
well-know financial magazines
dollar cost average
21. The difference between a higher selling price and a lower purchase price - resulting in a financial gain for the seller
Series I Savings Bond
capital gain
bond
well-know full-service brokers
22. A term that describes investments on which earnings are not taxed until retirement
Rule of 72
savings account
satellite decisions
tax deferred
23. A payroll deduction collected by employers by law and sent to the state government to support state services.
state income tax
well-known financial newspapers
real estate
savings
24. On a credit card - the length of time you have before you start accumulating interest on an unpaid balance.
grace period
debit card
portfolio
social security tax
25. Bold and high-risk investments
systematic investing
state income tax
full-service broker
speculative investments
26. The amount a corporation pays at a fixed amount when repaying a bond
credit limit
portfolio
interest
annuities
27. Companies that provide extensive financial data to clients
US Treasury Bills
annual report
checking account
investor services
28. The right & not the obligation & to buy or sell commodities or stocks for a specific price on a specific date
Investing
well-known investor services
credit limit
options
29. A technique to gain personal information for the purpose of identity theft - usually by means of fraudulent e-mail or pop-up messages.
stocks
phishing
APR - Average Percentage Rate
stock market
30. The amount a corporation pays at a fixed amount when repaying a bond
opportunity cost
savings account
interest
permanent investment
31. The difference between a higher selling price and a lower purchase price - resulting in a financial gain for the seller
periodic or occasional expenses
compounding interest rate
deductible
capital gain
32. Investment choices that will be re-evaluated within a year or less
delayed gratification
risk taker
Temporary investment
phishing
33. A form of bankruptcy that allows you to repay many of your debts over a period of time - usually no more than five years.
options
bond
chapter 13
dollar cost average
34. Brokers who provide clients with analysis and opinions
full-service broker
Personal Identification Number - PIN
principal
capital gain
35. Is a numerical rating - based on credit report information that represents a person's level of creditworthiness
US Treasury Bonds
time value of money
credit score
career
36. Fee on credit card for making charges above your credit limit.
dividend
credit score
over-the-limit fee
delayed gratification
37. The difference between a lower selling price and a higher purchase price resulting in a financial loss for the seller
financial pages
short term goal
career
capital loss
38. People trained to give investment advise based on your goals & age & lifestyle & etc
interest-rate risk
financial advisers
bond
APR - Average Percentage Rate
39. The idea that money today is worth more than the same amount of money in the future due to its potential earning capacity.
time value of money
Rule of 72
futures
principal
40. Things that add comfort and pleasure to your life but you can live without if you need to.
Temporary investment
wants
debit card
career
41. 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.
yield
principal
delayed gratification
Rule of 72
42. Discount bonds; a bond purchased for less than the maturity value; example you buy a $50 bond for $25
Series EE Savings Bond
futures
delayed gratification
values
43. A chosen pursuit - profession - or occupation
futures
delayed gratification
principal
career
44. Contacts to buy and sell commodities or stocks for a specific price on a specific date
rate of return
checking account
savings
futures
45. A unit of ownership in a corporation
tax deferred
stocks
risk management
US Treasury Bonds
46. Investing with a series of regular payments; usually associated with life insurance companies
budget
spending plan
annuities
grace period
47. The probability that injury - damage - or loss will occur.
stock
compounding interest rate
risk
bankruptcy
48. Property consisting of houses and land
Series EE Savings Bond
capital gain
savings
real estate
49. The setting aside of money for future use or other investments
pay yourself first - P.Y.F.
APR - Average Percentage Rate
over-the-limit fee
chapter 13
50. Pooling of money from many investors to buy a large & diverse selection of securities
capital gain
mutual funds
penny stocks
full-service broker