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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. Money used for short-term needs like emergencies; advisers recommend three to six months' net pay for set aside for this
credit union
deductible
interest-rate risk
put-and-take account
2. A summary of a person's borrowing and repayment history.
credit history
wants
career
universal default
3. The amount a corporation borrowed in a bond situation
principal
Rule of 72
capital gain
credit union
4. Charles Schwab & TD Ameritrade & E*TRADE
well-known discount brokers
full-service broker
discount brokers
mutual fund
5. Wall Street Journal and Barron's
well-known financial newspapers
over-the-limit fee
put-and-take account
spending plan
6. The increase or decrease in the original purchase price of an investment over a period of time.
credit score
credit
company risk
rate of return
7. Another term for budget
spending plan
credit score
annuities
bond
8. Things that add comfort and pleasure to your life but you can live without if you need to.
Series EE Savings Bond
Series I Savings Bond
wants
values
9. Expenses that aren't paid every month and can be either fixed or variable.
deductible
well-know financial magazines
pay yourself first - P.Y.F.
periodic or occasional expenses
10. A government sector that requires all public corporations to make annual reports available to their stockholders
Securities and Exchange Commission
grace period
cash flow
speculative investments
11. 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.
bond
financial pages
social security tax
savings account
12. A payroll deduction collected by employers by law and sent to the state government to support state services.
state income tax
bankruptcy
stocks
market risk
13. A form of bankruptcy that allows you to repay many of your debts over a period of time - usually no more than five years.
maturity date
maturity date
satellite decisions
chapter 13
14. Coins & art & memorabilia or other items that are popular from time to time
Securities and Exchange Commission
bankruptcy
collectibles
US Treasury Bonds
15. Brokers who provided little or no information to clients
municipal bonds
discount brokers
credit
Investing
16. 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.
dollar cost average
well-know full-service brokers
universal default
stock
17. 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.
capital loss
cash flow
universal default
municipal bonds
18. Associated with owning stock of similar groups of businesses
strategic investing
industry risk
full-service broker
penny stocks
19. Management of investment alternatives to maximize the growth of your portfolio
risk taker
strategic investing
financial pages
initial investing
20. A detailed record of your personal credit and financial transactions.
pay yourself first - P.Y.F.
credit report
financial advisers
systematic investing
21. Debt obligations of corporations
career
corporate bonds
time value of money
cash flow
22. Property consisting of houses and land
US Treasury Notes
values
real estate
well-known investor services
23. The belief - qualities - or standards that you consider important or desirable.
credit limit
bond
risk management
values
24. The amount of a loss you must pay out of your own pocket before the insurance company will step in and pay the rest.
diversification
chapter 13
diversification
deductible
25. Earning interest on interest.
dividend
compounding interest rate
diversification
credit limit
26. Movement of money you receive and the money you spend
credit history
time value of money
cash flow
phishing
27. 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 account
US Treasury Notes
savings account
permanent investment
28. A unit of ownership in a corporation
chapter 7
Investing
stocks
universal default
29. A fee charged to a borrower (especially for a mortgage loan) to cover the costs of initiating the loan.
share draft account
origination fee
risk management
annuities
30. Investment choices that will be held for long periods
investing risk
permanent investment
savings
bank
31. A certificate documenting the shareholder's ownership in the corporation
values
stock
deductible
capital loss
32. Conservative investing; used when you have 'excess' savings
speculative investments
initial investing
company risk
bond
33. A general and progressive increase in prices
inflation
credit report
coverage limit
risk
34. US treasury security that matures in 30 years
US Treasury Bonds
risk taker
Temporary investment
annuities
35. Maximum amount of credit a lender will extend to a customer.
satellite decisions
annuities
credit limit
industry risk
36. Reducing investment risk by putting money in several different types of investments.
Series EE Savings Bond
grace period
diversification
company risk
37. Brokers who provided little or no information to clients
chapter 7
values
discount brokers
diversification
38. Investors who take to take chances
interest-rate risk
company risk
risk taker
bond
39. Investors who take to take chances
diversification
risk taker
opportunity cost
cash flow
40. Uncontrollable and unpredictable events that cause an investment to lose value
pay yourself first - P.Y.F.
non-market risk
time value of money
Series I Savings Bond
41. Debt obligations of state or local governments
savings account
financial pages
municipal bonds
savings
42. Merrill Lynch & Fidelity Investments & American Express
well-know full-service brokers
deductible
spyware
opportunity cost
43. A financial institution owned by its members that provides savings and checking accounts and other services to its membership at low fees.
credit union
strategic investing
annual fee
coverage limit
44. The right & not the obligation & to buy or sell commodities or stocks for a specific price on a specific date
yield
options
delayed gratification
share draft account
45. The entire amount of money you owe to lenders
debt
US Treasury Bonds
bank
put-and-take account
46. 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.
Securities and Exchange Commission
deductible
APR - Average Percentage Rate
capital loss
47. Losses in an investment as a result of the business cycle
debt
over-the-limit fee
systematic investing
market risk
48. The probability that injury - damage - or loss will occur.
maturity date
credit score
credit history
risk
49. Investors who are afraid to make investments
speculative investments
US Treasury Bills
risk averse
well-known investor services
50. Business Weekly & Forbes & Money
principal
well-know financial magazines
capital loss
spending plan