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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. The amount a corporation borrowed in a bond situation
principal
Temporary investment
APR - Average Percentage Rate
pay yourself first - P.Y.F.
2. Fee on credit card for making charges above your credit limit.
share account
non-market risk
over-the-limit fee
origination fee
3. Conservative investing; used when you have 'excess' savings
dollar cost average
credit union
initial investing
investing risk
4. Newspapers list of securities
bond
annuities
market risk
financial pages
5. The right & not the obligation & to buy or sell commodities or stocks for a specific price on a specific date
options
pay yourself first - P.Y.F.
industry risk
opportunity cost
6. Charles Schwab & TD Ameritrade & E*TRADE
well-known discount brokers
credit union
credit report
interest-rate risk
7. A general and progressive increase in prices
initial investing
APR - Average Percentage Rate
inflation
rate of return
8. US treasury security that matures from a few days to one year
US Treasury Bills
corporate bonds
mutual funds
share draft account
9. A fee charged to a borrower (especially for a mortgage loan) to cover the costs of initiating the loan.
wants
origination fee
chapter 7
municipal bonds
10. A payroll deduction collected by employers by law and sent to the state government to support state services.
debit card
state income tax
collectibles
satellite decisions
11. Merrill Lynch & Fidelity Investments & American Express
Securities and Exchange Commission
mutual fund
phishing
well-know full-service brokers
12. The practice of investing a fixed amount into the same investment at regular intervals - regardless of what the stock market is doing.
collectibles
cash flow
dollar cost average
annual report
13. The unique passcode number you use to get access to your savings and/or checking account
dividend
Personal Identification Number - PIN
annual report
over-the-limit fee
14. 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.
pay yourself first - P.Y.F.
risk averse
universal default
diversification
15. The difference between a lower selling price and a higher purchase price resulting in a financial loss for the seller
periodic or occasional expenses
bond
savings
capital loss
16. Associated with owning stock of only one company
principal
company risk
systematic investing
over-the-limit fee
17. The profit from an investment.
Securities and Exchange Commission
US Treasury Bills
stocks
yield
18. The value of What is given up when you choose one option over another.
Temporary investment
municipal bonds
maturity date
opportunity cost
19. An electronic machine that bank customers and credit union members can use to withdraw cash and make other financial transactions.
ATM - Automatic Teller Machine
investing risk
discount brokers
credit history
20. Business Weekly & Forbes & Money
well-know financial magazines
company risk
portfolio
credit history
21. The process of dealing with the chance of a potential personal or financial loss.
risk
risk management
financial advisers
wants
22. Bold and high-risk investments
market risk
collectibles
speculative investments
Rule of 72
23. Amount of money that is set aside for future purchases
US Treasury Notes
savings
annual fee
initial investing
24. 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.
collectibles
budget
APR - Average Percentage Rate
variable expenses
25. Debt obligations of state or local governments
mutual funds
Rule of 72
municipal bonds
futures
26. Wall Street Journal and Barron's
savings account
systematic investing
well-known financial newspapers
options
27. Newspapers list of securities
interest-rate risk
Securities and Exchange Commission
financial pages
capital loss
28. The practice of investing a fixed amount into the same investment at regular intervals - regardless of what the stock market is doing.
credit report
dollar cost average
Series EE Savings Bond
US Treasury Bills
29. Standard and Poor's and Moody's
political risk
stock market
principal
well-known investor services
30. A detailed record of your personal credit and financial transactions.
periodic or occasional expenses
credit report
Rule of 72
ATM - Automatic Teller Machine
31. Summary of a corporation's financial condition
annual report
put-and-take account
corporate bonds
systematic investing
32. Companies that provide extensive financial data to clients
collectibles
market risk
investor services
periodic or occasional expenses
33. A bad side effect of free downloads that may be used to send you pop-up ads - redirect your computer to unwanted Web sites - monitor your Internet surfing - or record your keystrokes in an effort to steal your identity.
spyware
well-known investor services
Rule of 72
permanent investment
34. Charles Schwab & TD Ameritrade & E*TRADE
US Treasury Bonds
well-known discount brokers
social security tax
origination fee
35. The use of long-term savings to earn a financial return
Investing
strategic investing
bankruptcy
state income tax
36. The increase or decrease in the original purchase price of an investment over a period of time.
capital loss
stock market
stocks
rate of return
37. A bank account against which the depositor can draw checks payable on demand.
capital loss
options
checking account
risk taker
38. Coins & art & memorabilia or other items that are popular from time to time
yield
interest-rate risk
collectibles
bank
39. Spreading risk among many types of investments; one way to minimize risk
mutual fund
portfolio
diversification
put-and-take account
40. The difference between a higher selling price and a lower purchase price - resulting in a financial gain for the seller
principal
capital gain
speculative investments
stock market
41. Expenses that are not fixed.
compounding interest rate
Securities and Exchange Commission
variable expenses
rate of return
42. The place where stocks are bought and sold.
stock market
social security tax
Series EE Savings Bond
annual fee
43. Brokers who provide clients with analysis and opinions
bank
chapter 13
full-service broker
inflation
44. The chance that inflation will rise faster than the rate of return on an investment
US Treasury Bonds
interest-rate risk
debit card
stock
45. The credit union term for a checking account.
political risk
well-know full-service brokers
share draft account
permanent investment
46. Discount bonds; a bond purchased for less than the maturity value; example you buy a $50 bond for $25
values
risk
Series EE Savings Bond
Personal Identification Number - PIN
47. Reducing investment risk by putting money in several different types of investments.
Securities and Exchange Commission
diversification
financial advisers
well-known financial newspapers
48. Pooling of money from many investors to buy a large & diverse selection of securities
mutual funds
financial pages
strategic investing
permanent investment
49. The process of dealing with the chance of a potential personal or financial loss.
wants
risk management
Temporary investment
credit limit
50. 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.
investing risk
discount brokers
diversification
social security tax