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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 credit union term for a checking account.
phishing
dividend
career
share draft account
2. Summary of a corporation's financial condition
annual report
chapter 7
risk management
chapter 13
3. The entire amount of money you owe to lenders
risk averse
bond
debt
options
4. The practice of investing a fixed amount into the same investment at regular intervals - regardless of what the stock market is doing.
financial advisers
chapter 13
dollar cost average
discount brokers
5. The willingness to give up something you want now in return for something better in the future.
delayed gratification
annuities
Personal Identification Number - PIN
well-known discount brokers
6. 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.
credit union
principal
Rule of 72
mutual funds
7. The amount of money someone is willing to loan you.
diversification
principal
investor services
Investing
8. The difference between a higher selling price and a lower purchase price - resulting in a financial gain for the seller
Rule of 72
chapter 7
capital gain
portfolio
9. Newspapers list of securities
financial pages
grace period
capital loss
compounding interest rate
10. Investment choices that will be held for long periods
stock
permanent investment
bank
origination fee
11. Is a numerical rating - based on credit report information that represents a person's level of creditworthiness
credit score
systematic investing
share account
company risk
12. The unique passcode number you use to get access to your savings and/or checking account
stock
Personal Identification Number - PIN
credit report
investing risk
13. People trained to give investment advise based on your goals & age & lifestyle & etc
risk
credit score
political risk
financial advisers
14. The unique passcode number you use to get access to your savings and/or checking account
capital loss
US Treasury Bonds
Personal Identification Number - PIN
risk averse
15. The entire amount of money you owe to lenders
full-service broker
opportunity cost
debt
stocks
16. Reducing investment risk by putting money in several different types of investments.
credit
capital loss
social security tax
diversification
17. Low-priced stocks of small companies that have no track record
financial pages
corporate bonds
cash flow
penny stocks
18. A fee charged to a borrower (especially for a mortgage loan) to cover the costs of initiating the loan.
credit report
bond
origination fee
budget
19. Charles Schwab & TD Ameritrade & E*TRADE
credit history
pay yourself first - P.Y.F.
cash flow
well-known discount brokers
20. Companies that provide extensive financial data to clients
municipal bonds
time value of money
risk
investor services
21. The belief - qualities - or standards that you consider important or desirable.
maturity date
opportunity cost
values
checking account
22. The probability that injury - damage - or loss will occur.
origination fee
values
risk
real estate
23. Investing with a series of regular payments; usually associated with life insurance companies
credit score
put-and-take account
annuities
debt
24. 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.
credit history
universal default
corporate bonds
spending plan
25. Money used for short-term needs like emergencies; advisers recommend three to six months' net pay for set aside for this
annual fee
put-and-take account
well-known financial newspapers
phishing
26. A certificate documenting the shareholder's ownership in the corporation
corporate bonds
stock
discount brokers
diversification
27. A summary of a person's borrowing and repayment history.
strategic investing
real estate
credit history
well-known discount brokers
28. 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.
mutual fund
dividend
savings account
tax deferred
29. An amount of money that is loaned on trust with the expectation that it will be repaid at a later date.
credit
municipal bonds
Securities and Exchange Commission
non-market risk
30. The profit from an investment.
diversification
yield
share account
risk management
31. A unit of ownership in a corporation
political risk
stocks
non-market risk
capital gain
32. Brokers who provide clients with analysis and opinions
full-service broker
industry risk
spyware
risk averse
33. An amount of money that is loaned on trust with the expectation that it will be repaid at a later date.
capital gain
credit
debit card
time value of money
34. A form of bankruptcy that allows you to repay many of your debts over a period of time - usually no more than five years.
chapter 13
US Treasury Bills
pay yourself first - P.Y.F.
diversification
35. Actions that the government might take that would reduce the value of an investment
futures
political risk
chapter 13
annuities
36. Bold and high-risk investments
principal
speculative investments
chapter 13
savings
37. Amount of money that is set aside for future purchases
savings
credit
dividend
credit limit
38. Investors who are afraid to make investments
satellite decisions
variable expenses
risk averse
stock market
39. The credit union term for a savings account.
financial pages
share account
values
credit union
40. 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.
savings account
permanent investment
coverage limit
bankruptcy
41. Brokers who provide clients with analysis and opinions
full-service broker
Series EE Savings Bond
Series I Savings Bond
well-known financial newspapers
42. The right & not the obligation & to buy or sell commodities or stocks for a specific price on a specific date
credit union
stock market
non-market risk
options
43. Investment choices that will be held for long periods
permanent investment
Rule of 72
corporate bonds
put-and-take account
44. Movement of money you receive and the money you spend
cash flow
tax deferred
variable expenses
wants
45. A legal process to get out of debt when you can no longer make all your required payments.
stock
futures
wants
bankruptcy
46. Debt obligations of corporations
time value of money
well-know financial magazines
tax deferred
corporate bonds
47. Is a numerical rating - based on credit report information that represents a person's level of creditworthiness
Securities and Exchange Commission
Series I Savings Bond
share draft account
credit score
48. An investment security that is actually a diversified portfolio of equities - bonds or other securities. Investors purchase shares and can sell them at any time.
penny stocks
mutual fund
time value of money
values
49. Actions that the government might take that would reduce the value of an investment
diversification
stock
political risk
mutual funds
50. Collection of investments
credit report
dollar cost average
time value of money
portfolio