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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. Contacts to buy and sell commodities or stocks for a specific price on a specific date
futures
well-known investor services
credit score
credit history
2. A technique to gain personal information for the purpose of identity theft - usually by means of fraudulent e-mail or pop-up messages.
share account
phishing
Series EE Savings Bond
risk taker
3. Investment choices that will be held for long periods
diversification
pay yourself first - P.Y.F.
well-known investor services
permanent investment
4. The amount a corporation pays at a fixed amount when repaying a bond
chapter 13
credit history
interest
non-market risk
5. Discount bonds; a bond purchased for less than the maturity value; example you buy a $50 bond for $25
capital gain
budget
Series EE Savings Bond
bond
6. Expenses that aren't paid every month and can be either fixed or variable.
over-the-limit fee
state income tax
periodic or occasional expenses
industry risk
7. 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.
Rule of 72
mutual funds
stocks
risk management
8. Standard and Poor's and Moody's
Temporary investment
well-known investor services
Investing
APR - Average Percentage Rate
9. A for-profit company that is owned by its stockholders and provides savings and checking accounts and other financial services to its customers.
universal default
savings
interest-rate risk
bank
10. Charles Schwab & TD Ameritrade & E*TRADE
well-known discount brokers
industry risk
well-know full-service brokers
interest-rate risk
11. US treasury security that matures in 2 & 5 & or 10 years
initial investing
universal default
US Treasury Notes
annuities
12. A goal to be achieved within the next three months.
bank
short term goal
capital loss
dividend
13. Low-priced stocks of small companies that have no track record
inflation
chapter 13
penny stocks
speculative investments
14. The entire amount of money you owe to lenders
risk management
investor services
grace period
debt
15. The portion of the profits paid to the shareholders of a company.
dividend
yield
stocks
company risk
16. 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.
grace period
social security tax
values
annual report
17. Companies that provide extensive financial data to clients
stock market
investor services
pay yourself first - P.Y.F.
annuities
18. 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.'
debit card
speculative investments
US Treasury Bills
Investing
19. A general and progressive increase in prices
inflation
risk
collectibles
grace period
20. Business Weekly & Forbes & Money
well-know financial magazines
financial pages
corporate bonds
share draft account
21. 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.
bond
US Treasury Bonds
well-known financial newspapers
Rule of 72
22. Smaller decisions that can result from a major decision.
systematic investing
non-market risk
satellite decisions
Temporary investment
23. Uncontrollable and unpredictable events that cause an investment to lose value
state income tax
Temporary investment
grace period
non-market risk
24. The increase or decrease in the original purchase price of an investment over a period of time.
municipal bonds
rate of return
well-known investor services
risk taker
25. The portion of the profits paid to the shareholders of a company.
opportunity cost
delayed gratification
interest
dividend
26. Movement of money you receive and the money you spend
principal
cash flow
bond
well-known discount brokers
27. Management of investment alternatives to maximize the growth of your portfolio
futures
strategic investing
checking account
investing risk
28. The process of dealing with the chance of a potential personal or financial loss.
options
checking account
systematic investing
risk management
29. Losses in an investment as a result of the business cycle
market risk
US Treasury Notes
risk
corporate bonds
30. A detailed record of your personal credit and financial transactions.
state income tax
interest
risk averse
credit report
31. The difference between a lower selling price and a higher purchase price resulting in a financial loss for the seller
dollar cost average
mutual funds
tax deferred
capital loss
32. Earning interest on interest.
yield
compounding interest rate
ATM - Automatic Teller Machine
capital gain
33. The idea that money today is worth more than the same amount of money in the future due to its potential earning capacity.
well-know full-service brokers
satellite decisions
debt
time value of money
34. Pooling of money from many investors to buy a large & diverse selection of securities
mutual funds
industry risk
initial investing
speculative investments
35. Pooling of money from many investors to buy a large & diverse selection of securities
mutual funds
capital gain
speculative investments
put-and-take account
36. A technique used for estimating the number of years required to double your money at a given rate
credit union
values
Rule of 72
periodic or occasional expenses
37. The date on which the borrowed money must be repaid
maturity date
Personal Identification Number - PIN
investing risk
stock market
38. The maximum amount an insurance company will pay if you file a claim.
futures
real estate
Series I Savings Bond
coverage limit
39. The probability that injury - damage - or loss will occur.
Rule of 72
risk
coverage limit
maturity date
40. Another term for budget
municipal bonds
spending plan
savings account
principal
41. A formal contract to repay borrowed money with interest at fixed intervals
bond
options
market risk
debit card
42. Investment choices that will be re-evaluated within a year or less
grace period
over-the-limit fee
Temporary investment
short term goal
43. 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.
cash flow
collectibles
time value of money
APR - Average Percentage Rate
44. On a credit card - the length of time you have before you start accumulating interest on an unpaid balance.
well-known discount brokers
grace period
annuities
permanent investment
45. The belief - qualities - or standards that you consider important or desirable.
investor services
time value of money
dividend
values
46. An electronic machine that bank customers and credit union members can use to withdraw cash and make other financial transactions.
time value of money
chapter 7
options
ATM - Automatic Teller Machine
47. Amount of money that is set aside for future purchases
credit score
credit report
savings
capital gain
48. Brokers who provided little or no information to clients
initial investing
discount brokers
short term goal
delayed gratification
49. Money used for short-term needs like emergencies; advisers recommend three to six months' net pay for set aside for this
non-market risk
Rule of 72
put-and-take account
credit report
50. Investment choices that will be held for long periods
well-known discount brokers
bank
credit limit
permanent investment