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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. Losses in an investment as a result of the business cycle
market risk
spending plan
principal
ATM - Automatic Teller Machine
2. US treasury security that matures in 30 years
US Treasury Bonds
Securities and Exchange Commission
capital gain
debit card
3. Brokers who provide clients with analysis and opinions
coverage limit
coverage limit
rate of return
full-service broker
4. The place where stocks are bought and sold.
stock market
bank
share account
satellite decisions
5. The value of What is given up when you choose one option over another.
opportunity cost
origination fee
budget
delayed gratification
6. Associated with owning stock of similar groups of businesses
tax deferred
speculative investments
checking account
industry risk
7. Discount bonds; a bond purchased for less than the maturity value; example you buy a $50 bond for $25
values
credit score
savings account
Series EE Savings Bond
8. A technique to gain personal information for the purpose of identity theft - usually by means of fraudulent e-mail or pop-up messages.
options
yield
phishing
municipal bonds
9. A general and progressive increase in prices
principal
options
inflation
well-know financial magazines
10. Investors who are afraid to make investments
periodic or occasional expenses
annual report
risk averse
career
11. A term that describes investments on which earnings are not taxed until retirement
tax deferred
capital gain
penny stocks
wants
12. An electronic machine that bank customers and credit union members can use to withdraw cash and make other financial transactions.
discount brokers
options
investor services
ATM - Automatic Teller Machine
13. A spending plan for managing money during a given period of time.
non-market risk
Investing
budget
US Treasury Notes
14. Merrill Lynch & Fidelity Investments & American Express
well-know full-service brokers
diversification
maturity date
industry risk
15. An electronic machine that bank customers and credit union members can use to withdraw cash and make other financial transactions.
savings account
social security tax
systematic investing
ATM - Automatic Teller Machine
16. Another term for budget
well-known financial newspapers
discount brokers
variable expenses
spending plan
17. A detailed record of your personal credit and financial transactions.
credit report
financial pages
debt
investor services
18. Movement of money you receive and the money you spend
financial pages
cash flow
values
checking account
19. The use of long-term savings to earn a financial return
Investing
interest
social security tax
credit report
20. Management of investment alternatives to maximize the growth of your portfolio
chapter 13
strategic investing
debt
universal default
21. Spreading risk among many types of investments; one way to minimize risk
Securities and Exchange Commission
credit report
financial advisers
diversification
22. Contacts to buy and sell commodities or stocks for a specific price on a specific date
bank
variable expenses
futures
collectibles
23. US treasury security that matures in 2 & 5 & or 10 years
Personal Identification Number - PIN
bank
well-know financial magazines
US Treasury Notes
24. An amount that credit card companies can charge for the use of a credit card.
savings
financial pages
initial investing
annual fee
25. The value of What is given up when you choose one option over another.
opportunity cost
credit
stocks
risk taker
26. The right & not the obligation & to buy or sell commodities or stocks for a specific price on a specific date
options
periodic or occasional expenses
investing risk
delayed gratification
27. Spreading risk among many types of investments; one way to minimize risk
capital loss
diversification
compounding interest rate
interest-rate risk
28. Fee on credit card for making charges above your credit limit.
spyware
over-the-limit fee
diversification
financial pages
29. 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.
yield
coverage limit
risk taker
spyware
30. A chosen pursuit - profession - or occupation
wants
credit limit
career
company risk
31. Newspapers list of securities
Rule of 72
deductible
financial pages
US Treasury Notes
32. Debt obligations of corporations
universal default
corporate bonds
periodic or occasional expenses
compounding interest rate
33. The willingness to give up something you want now in return for something better in the future.
well-know financial magazines
financial pages
delayed gratification
municipal bonds
34. Reducing investment risk by putting money in several different types of investments.
Temporary investment
diversification
collectibles
well-know full-service brokers
35. Expenses that aren't paid every month and can be either fixed or variable.
periodic or occasional expenses
stock market
risk management
initial investing
36. A legal process to get out of debt when you can no longer make all your required payments.
compounding interest rate
company risk
bankruptcy
capital gain
37. A payroll deduction collected by employers by law and sent to the state government to support state services.
state income tax
career
bankruptcy
discount brokers
38. Reducing investment risk by putting money in several different types of investments.
strategic investing
diversification
risk taker
credit report
39. 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.
share draft account
annual report
savings account
investing risk
40. Business Weekly & Forbes & Money
financial advisers
well-know financial magazines
portfolio
cash flow
41. Conservative investing; used when you have 'excess' savings
options
risk averse
initial investing
investing risk
42. The chance that an investment's value will decrease
investing risk
ATM - Automatic Teller Machine
Personal Identification Number - PIN
corporate bonds
43. 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.'
interest
credit report
debit card
portfolio
44. Standard and Poor's and Moody's
interest
speculative investments
capital loss
well-known investor services
45. Investment choices that will be held for long periods
Rule of 72
tax deferred
risk averse
permanent investment
46. The amount of a loss you must pay out of your own pocket before the insurance company will step in and pay the rest.
credit history
deductible
risk
speculative investments
47. The practice of investing a fixed amount into the same investment at regular intervals - regardless of what the stock market is doing.
initial investing
cash flow
risk averse
dollar cost average
48. Summary of a corporation's financial condition
annual report
credit history
satellite decisions
bankruptcy
49. A goal to be achieved within the next three months.
futures
Personal Identification Number - PIN
short term goal
well-known discount brokers
50. A government sector that requires all public corporations to make annual reports available to their stockholders
chapter 13
US Treasury Bonds
Securities and Exchange Commission
stocks