Test your basic knowledge |

Wealth Management

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. A business activity that changes assets - liabilities - or owner's equity






2. An estimation of the value of a business that is obtained by multiplying the number of shares outstanding by the current price of a share






3. A loan where the payment is acheived through interest






4. Loan deal in which the actual lender may not be known to the borrower.






5. A specific plan for spending your income






6. The act of committing money or capital to an endeavor (a business - project - real estate - etc.) with the expectation of obtaining an additional income or profit.






7. An evaluation by a rating company of the probability that a particular bond issue will default






8. A loan made on the signature and credit of the borrower - not secured by collateral. Credit card. (Debenture)






9. A penalty for making a payment after the due date






10. The excess of revenues over outlays in a given period of time (including depreciation and other non-cash expenses)






11. The act of taking out money or other capital






12. Debt backed by a mortgage - pledge of collateral - or other lien; debt for which the creditor has the right to pursue specific pledged property upon default. Examples include home mortgages - auto loans and tax liens.






13. Total assets minus total liabilities






14. The commercial activity of transporting and selling goods from a producer to a consumer






15. The process of managing one's assets and wealth






16. Things that incite or spur to action; rewards or reasons for performing a task.






17. The act of proving that an instrument purporting to be a will was signed and executed in accord with legal requirements






18. The period covered by a salary payment






19. Programs aimed at helping employees integrate - assimilate - and transition to new jobs






20. Financial reports that summarize the financial condition and operations of a business






21. The process of managing one's assets and wealth






22. The amount of money you would need to deposit now in order to attain a desired amount in the future






23. Limited quantities of resources to meet unlimited wants






24. Interest calculated on both the principal and the accrued interest






25. The act of proving that an instrument purporting to be a will was signed and executed in accord with legal requirements






26. A bank account that accumulates interest






27. A debt; something disadvantageous






28. A guarantee of accrued benefits to participants at retirement age - regardless of their employment status at that time






29. A record of the financial situation of an institution on a particular date by listing its assets and the claims against those assets






30. The money paid for employee services






31. Stock whose holders are guaranteed priority in the payment of dividends but whose holders have no voting rights






32. Funds that pay part of their distributions out of principal cannibalize their assets. This depletes the fund's asset base. Funds cannibalize assets to maintain a dividend and keep shareholders happy. However - like feeding a cow its own milk - this p






33. Prompt payment for goods or services in currency or by check






34. This stands for annual percentage rate - which is a number calculated by taking into account the total cost of the loan - including what the borrower will pay in interest; this makes it easier to compare different loan offers






35. Electronic Data Gathering Analysis and Retrieval - the electronic system used by the SEC to enable investors to search electronically for financial reports filed by individual companies






36. An extra charge for various credit activities such as using an ATM or receiving a cash advance






37. A deduction allowed to a taxpayer because of his status (having certain dependents or being blind or being over 65 etc.)






38. The percentage of a sum of money charged for its use






39. The fee - expressed as a percentage - a borrower owes for the use of a creditor's money. At an interest rate of 10% - a borrower would pay $110 for $100 borrowed.






40. Programs aimed at helping employees integrate - assimilate - and transition to new jobs






41. Institution that functions much like a business - but does not operate for the purpose of generating profits






42. Income on which tax must be paid; total income minus exemptions and deductions






43. A mutual fund that invests in the stocks that are the basis of a well-known stock or bond index






44. Certificates that represent money the government has borrowed from private citizens






45. Something that is made open or revealed






46. The amount of tax owed






47. A regular payment to a person that iis intended to allow them to subsist without working






48. A mutual fund that invests in the stocks that are the basis of a well-known stock or bond index






49. Funds that pay part of their distributions out of principal cannibalize their assets. This depletes the fund's asset base. Funds cannibalize assets to maintain a dividend and keep shareholders happy. However - like feeding a cow its own milk - this p






50. A document - usually containing financial data - that a company delivers to the SEC and - thereby - to the public.