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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. Merrill Lynch & Fidelity Investments & American Express
cash flow
yield
corporate bonds
well-know full-service brokers
2. Movement of money you receive and the money you spend
cash flow
mutual fund
Investing
tax deferred
3. Is a numerical rating - based on credit report information that represents a person's level of creditworthiness
credit score
stocks
Rule of 72
cash flow
4. An amount of money that is loaned on trust with the expectation that it will be repaid at a later date.
credit
phishing
permanent investment
investor services
5. Reducing investment risk by putting money in several different types of investments.
credit report
Investing
capital gain
diversification
6. An electronic machine that bank customers and credit union members can use to withdraw cash and make other financial transactions.
bankruptcy
interest
ATM - Automatic Teller Machine
risk management
7. A chosen pursuit - profession - or occupation
wants
career
share account
dollar cost average
8. The credit union term for a checking account.
share draft account
debt
annual fee
compounding interest rate
9. Debt obligations of state or local governments
share draft account
Rule of 72
municipal bonds
industry risk
10. Conservative investing; used when you have 'excess' savings
grace period
compounding interest rate
initial investing
periodic or occasional expenses
11. US treasury security that matures in 2 & 5 & or 10 years
stock
credit limit
US Treasury Notes
dollar cost average
12. A summary of a person's borrowing and repayment history.
credit history
credit union
universal default
mutual fund
13. The difference between a lower selling price and a higher purchase price resulting in a financial loss for the seller
political risk
capital loss
put-and-take account
US Treasury Bonds
14. US treasury security that matures from a few days to one year
risk taker
futures
US Treasury Bills
Rule of 72
15. The amount a corporation pays at a fixed amount when repaying a bond
interest
time value of money
capital gain
Series I Savings Bond
16. Investors who take to take chances
risk taker
savings account
US Treasury Bills
origination fee
17. The place where stocks are bought and sold.
speculative investments
stock market
share account
interest
18. A general and progressive increase in prices
inflation
bank
financial advisers
risk
19. The idea that money today is worth more than the same amount of money in the future due to its potential earning capacity.
company risk
time value of money
market risk
risk averse
20. A goal to be achieved within the next three months.
interest-rate risk
dollar cost average
mutual funds
short term goal
21. A certificate documenting the shareholder's ownership in the corporation
well-known discount brokers
ATM - Automatic Teller Machine
Securities and Exchange Commission
stock
22. 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
speculative investments
Temporary investment
stocks
23. 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.'
stocks
diversification
debit card
short term goal
24. Bonds designed for investors wanting to protect again inflation losses
pay yourself first - P.Y.F.
chapter 13
diversification
Series I Savings Bond
25. Associated with owning stock of only one company
company risk
Series I Savings Bond
full-service broker
diversification
26. The chance that an investment's value will decrease
Securities and Exchange Commission
bank
Series I Savings Bond
investing risk
27. Fee on credit card for making charges above your credit limit.
political risk
Rule of 72
over-the-limit fee
credit history
28. The chance that inflation will rise faster than the rate of return on an investment
phishing
satellite decisions
interest-rate risk
short term goal
29. The willingness to give up something you want now in return for something better in the future.
budget
delayed gratification
credit limit
mutual funds
30. Expenses that are not fixed.
risk taker
variable expenses
credit score
industry risk
31. A technique to gain personal information for the purpose of identity theft - usually by means of fraudulent e-mail or pop-up messages.
stock
short term goal
phishing
APR - Average Percentage Rate
32. An amount that credit card companies can charge for the use of a credit card.
interest
annual fee
APR - Average Percentage Rate
well-know full-service brokers
33. The unique passcode number you use to get access to your savings and/or checking account
cash flow
Personal Identification Number - PIN
discount brokers
coverage limit
34. A legal process to get out of debt when you can no longer make all your required payments.
checking account
universal default
state income tax
bankruptcy
35. Associated with owning stock of only one company
wants
initial investing
company risk
bankruptcy
36. 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.
collectibles
dividend
chapter 7
universal default
37. Debt obligations of corporations
municipal bonds
corporate bonds
bond
capital loss
38. The amount a corporation borrowed in a bond situation
principal
wants
non-market risk
stock
39. Money used for short-term needs like emergencies; advisers recommend three to six months' net pay for set aside for this
universal default
credit
well-know financial magazines
put-and-take account
40. The setting aside of money for future use or other investments
periodic or occasional expenses
interest-rate risk
pay yourself first - P.Y.F.
credit
41. US treasury security that matures from a few days to one year
capital loss
US Treasury Bills
systematic investing
Series EE Savings Bond
42. A for-profit company that is owned by its stockholders and provides savings and checking accounts and other financial services to its customers.
stocks
spyware
put-and-take account
bank
43. Business Weekly & Forbes & Money
well-know financial magazines
corporate bonds
Temporary investment
well-know full-service brokers
44. Discount bonds; a bond purchased for less than the maturity value; example you buy a $50 bond for $25
Series EE Savings Bond
cash flow
portfolio
chapter 13
45. Pooling of money from many investors to buy a large & diverse selection of securities
principal
investor services
Securities and Exchange Commission
mutual funds
46. People trained to give investment advise based on your goals & age & lifestyle & etc
credit
financial advisers
financial pages
savings account
47. The credit union term for a checking account.
share draft account
Securities and Exchange Commission
capital loss
annual report
48. A financial institution owned by its members that provides savings and checking accounts and other services to its membership at low fees.
principal
credit union
political risk
well-know financial magazines
49. The chance that inflation will rise faster than the rate of return on an investment
penny stocks
cash flow
interest-rate risk
debit card
50. Maximum amount of credit a lender will extend to a customer.
yield
stock
over-the-limit fee
credit limit