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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. Actions that the government might take that would reduce the value of an investment
portfolio
investing risk
political risk
principal
2. A goal to be achieved within the next three months.
risk
satellite decisions
short term goal
credit union
3. An amount of money that is loaned on trust with the expectation that it will be repaid at a later date.
credit
phishing
real estate
time value of money
4. Spreading risk among many types of investments; one way to minimize risk
dollar cost average
diversification
APR - Average Percentage Rate
US Treasury Notes
5. Reducing investment risk by putting money in several different types of investments.
diversification
dollar cost average
corporate bonds
origination fee
6. 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.
annuities
state income tax
social security tax
Series I Savings Bond
7. A financial institution owned by its members that provides savings and checking accounts and other services to its membership at low fees.
stock market
credit union
corporate bonds
debit card
8. The difference between a lower selling price and a higher purchase price resulting in a financial loss for the seller
capital loss
over-the-limit fee
rate of return
Rule of 72
9. 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.
risk taker
portfolio
Rule of 72
social security tax
10. The process of dealing with the chance of a potential personal or financial loss.
short term goal
risk management
speculative investments
coverage limit
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.
over-the-limit fee
Rule of 72
inflation
values
12. A summary of a person's borrowing and repayment history.
well-know full-service brokers
capital loss
social security tax
credit history
13. The probability that injury - damage - or loss will occur.
risk
investing risk
savings account
phishing
14. Smaller decisions that can result from a major decision.
investor services
Rule of 72
dividend
satellite decisions
15. A formal contract to repay borrowed money with interest at fixed intervals
bond
capital gain
Rule of 72
well-know financial magazines
16. A spending plan for managing money during a given period of time.
budget
debit card
Investing
financial advisers
17. A detailed record of your personal credit and financial transactions.
credit report
bank
credit score
permanent investment
18. The chance that an investment's value will decrease
state income tax
industry risk
periodic or occasional expenses
investing risk
19. Wall Street Journal and Barron's
credit limit
US Treasury Bills
well-known financial newspapers
chapter 13
20. Movement of money you receive and the money you spend
Investing
social security tax
cash flow
inflation
21. The value of What is given up when you choose one option over another.
Rule of 72
stock market
opportunity cost
debit card
22. A fee charged to a borrower (especially for a mortgage loan) to cover the costs of initiating the loan.
full-service broker
investor services
social security tax
origination fee
23. The use of long-term savings to earn a financial return
well-known investor services
bankruptcy
phishing
Investing
24. An amount that credit card companies can charge for the use of a credit card.
annual fee
put-and-take account
state income tax
debt
25. The chance that an investment's value will decrease
debt
delayed gratification
investing risk
grace period
26. An amount of money that is loaned on trust with the expectation that it will be repaid at a later date.
corporate bonds
collectibles
credit
capital loss
27. Debt obligations of corporations
corporate bonds
put-and-take account
market risk
APR - Average Percentage Rate
28. Investors who take to take chances
annual fee
corporate bonds
discount brokers
risk taker
29. The increase or decrease in the original purchase price of an investment over a period of time.
rate of return
maturity date
bankruptcy
investor services
30. Pooling of money from many investors to buy a large & diverse selection of securities
mutual funds
stock
principal
risk averse
31. The right & not the obligation & to buy or sell commodities or stocks for a specific price on a specific date
options
risk averse
spyware
variable expenses
32. An electronic machine that bank customers and credit union members can use to withdraw cash and make other financial transactions.
ATM - Automatic Teller Machine
interest
principal
chapter 7
33. The profit from an investment.
capital loss
compounding interest rate
yield
annual fee
34. Management of investment alternatives to maximize the growth of your portfolio
opportunity cost
well-known discount brokers
well-know financial magazines
strategic investing
35. The setting aside of money for future use or other investments
pay yourself first - P.Y.F.
full-service broker
Securities and Exchange Commission
company risk
36. Smaller decisions that can result from a major decision.
rate of return
bond
satellite decisions
risk averse
37. The belief - qualities - or standards that you consider important or desirable.
Investing
values
bank
mutual funds
38. Losses in an investment as a result of the business cycle
social security tax
Rule of 72
Series EE Savings Bond
market risk
39. Summary of a corporation's financial condition
well-known investor services
stock
checking account
annual report
40. Amount of money that is set aside for future purchases
spending plan
chapter 7
compounding interest rate
savings
41. Expenses that aren't paid every month and can be either fixed or variable.
periodic or occasional expenses
US Treasury Notes
investing risk
company risk
42. A chosen pursuit - profession - or occupation
career
coverage limit
maturity date
well-known financial newspapers
43. Coins & art & memorabilia or other items that are popular from time to time
wants
Series I Savings Bond
collectibles
universal default
44. Associated with owning stock of similar groups of businesses
market risk
industry risk
penny stocks
options
45. A payroll deduction collected by employers by law and sent to the state government to support state services.
ATM - Automatic Teller Machine
market risk
state income tax
share draft account
46. Summary of a corporation's financial condition
annual report
savings
portfolio
put-and-take account
47. Associated with owning stock of only one company
company risk
stock market
Series EE Savings Bond
put-and-take account
48. Fee on credit card for making charges above your credit limit.
well-know financial magazines
over-the-limit fee
stocks
APR - Average Percentage Rate
49. An amount that credit card companies can charge for the use of a credit card.
annual fee
risk
social security tax
stocks
50. Maximum amount of credit a lender will extend to a customer.
APR - Average Percentage Rate
credit limit
short term goal
time value of money