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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. Associated with owning stock of only one company
pay yourself first - P.Y.F.
company risk
speculative investments
principal
2. Associated with owning stock of similar groups of businesses
pay yourself first - P.Y.F.
compounding interest rate
US Treasury Bonds
industry risk
3. A formal contract to repay borrowed money with interest at fixed intervals
interest-rate risk
yield
bond
career
4. The idea that money today is worth more than the same amount of money in the future due to its potential earning capacity.
risk averse
time value of money
bankruptcy
debt
5. The belief - qualities - or standards that you consider important or desirable.
financial pages
diversification
interest
values
6. A goal to be achieved within the next three months.
short term goal
US Treasury Notes
full-service broker
variable expenses
7. An amount that credit card companies can charge for the use of a credit card.
Securities and Exchange Commission
short term goal
coverage limit
annual fee
8. The portion of the profits paid to the shareholders of a company.
tax deferred
bond
futures
dividend
9. A unit of ownership in a corporation
annual report
Series EE Savings Bond
stocks
political risk
10. Debt obligations of state or local governments
discount brokers
dollar cost average
municipal bonds
speculative investments
11. Discount bonds; a bond purchased for less than the maturity value; example you buy a $50 bond for $25
full-service broker
Series EE Savings Bond
time value of money
credit union
12. Bold and high-risk investments
speculative investments
ATM - Automatic Teller Machine
bond
risk taker
13. A technique used for estimating the number of years required to double your money at a given rate
well-known discount brokers
futures
Rule of 72
US Treasury Notes
14. The amount a corporation borrowed in a bond situation
principal
delayed gratification
Investing
bankruptcy
15. Management of investment alternatives to maximize the growth of your portfolio
strategic investing
chapter 13
diversification
coverage limit
16. Summary of a corporation's financial condition
political risk
permanent investment
satellite decisions
annual report
17. Merrill Lynch & Fidelity Investments & American Express
yield
opportunity cost
market risk
well-know full-service brokers
18. A technique to gain personal information for the purpose of identity theft - usually by means of fraudulent e-mail or pop-up messages.
phishing
APR - Average Percentage Rate
penny stocks
political risk
19. Investment choices that will be held for long periods
periodic or occasional expenses
corporate bonds
permanent investment
financial pages
20. Movement of money you receive and the money you spend
savings account
cash flow
opportunity cost
US Treasury Notes
21. A bank account against which the depositor can draw checks payable on demand.
social security tax
savings
annual report
checking account
22. People trained to give investment advise based on your goals & age & lifestyle & etc
inflation
financial advisers
investing risk
bankruptcy
23. Movement of money you receive and the money you spend
social security tax
well-know full-service brokers
cash flow
periodic or occasional expenses
24. The credit union term for a savings account.
stocks
well-known financial newspapers
non-market risk
share account
25. A form of bankruptcy that allows you to erase most of your debt.
chapter 7
stocks
principal
penny stocks
26. 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.
APR - Average Percentage Rate
bankruptcy
annuities
dollar cost average
27. Earning interest on interest.
company risk
compounding interest rate
US Treasury Bills
time value of money
28. US treasury security that matures in 30 years
origination fee
US Treasury Bonds
municipal bonds
deductible
29. The value of What is given up when you choose one option over another.
financial advisers
opportunity cost
Series I Savings Bond
savings account
30. A term that describes investments on which earnings are not taxed until retirement
tax deferred
career
capital gain
annual report
31. Investing with a series of regular payments; usually associated with life insurance companies
principal
annuities
risk
spending plan
32. A technique used for estimating the number of years required to double your money at a given rate
discount brokers
Rule of 72
well-known financial newspapers
credit
33. The amount a corporation pays at a fixed amount when repaying a bond
interest
full-service broker
risk taker
bank
34. Investment choices that will be re-evaluated within a year or less
Temporary investment
investing risk
debit card
bond
35. Debt obligations of state or local governments
municipal bonds
diversification
periodic or occasional expenses
financial pages
36. Expenses that are not fixed.
variable expenses
APR - Average Percentage Rate
share draft account
state income tax
37. Companies that provide extensive financial data to clients
mutual fund
spending plan
investor services
options
38. Coins & art & memorabilia or other items that are popular from time to time
collectibles
risk taker
Personal Identification Number - PIN
grace period
39. Summary of a corporation's financial condition
risk
risk
career
annual report
40. US treasury security that matures in 2 & 5 & or 10 years
US Treasury Notes
real estate
Investing
dollar cost average
41. Things that add comfort and pleasure to your life but you can live without if you need to.
wants
dollar cost average
Investing
diversification
42. Things that add comfort and pleasure to your life but you can live without if you need to.
options
permanent investment
diversification
wants
43. A form of bankruptcy that allows you to repay many of your debts over a period of time - usually no more than five years.
well-known discount brokers
maturity date
investing risk
chapter 13
44. A formal contract to repay borrowed money with interest at fixed intervals
time value of money
company risk
capital loss
bond
45. The belief - qualities - or standards that you consider important or desirable.
annuities
mutual funds
values
variable expenses
46. A term that describes investments on which earnings are not taxed until retirement
financial pages
APR - Average Percentage Rate
principal
tax deferred
47. 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.
universal default
investing risk
origination fee
Rule of 72
48. An account you have at a financial institution that helps you accumulate and save money and earn a small amount of interest at the same time.
savings account
short term goal
annuities
ATM - Automatic Teller Machine
49. A summary of a person's borrowing and repayment history.
credit history
well-known investor services
strategic investing
debt
50. Reducing investment risk by putting money in several different types of investments.
phishing
well-known financial newspapers
social security tax
diversification