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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. A legal process to get out of debt when you can no longer make all your required payments.
dollar cost average
industry risk
risk averse
bankruptcy
2. The difference between a higher selling price and a lower purchase price - resulting in a financial gain for the seller
capital gain
credit limit
cash flow
diversification
3. The probability that injury - damage - or loss will occur.
wants
risk
well-know financial magazines
annuities
4. Brokers who provided little or no information to clients
US Treasury Notes
penny stocks
capital loss
discount brokers
5. Earning interest on interest.
compounding interest rate
strategic investing
short term goal
non-market risk
6. Companies that provide extensive financial data to clients
investor services
investing risk
principal
spending plan
7. A bank account against which the depositor can draw checks payable on demand.
share draft account
cash flow
annual report
checking account
8. Discount bonds; a bond purchased for less than the maturity value; example you buy a $50 bond for $25
debit card
short term goal
Series EE Savings Bond
rate of return
9. 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.
diversification
credit history
Rule of 72
well-know full-service brokers
10. 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.'
stock market
spyware
spyware
debit card
11. Reducing investment risk by putting money in several different types of investments.
financial pages
social security tax
diversification
principal
12. A payroll deduction collected by employers by law and sent to the state government to support state services.
collectibles
spending plan
corporate bonds
state income tax
13. The profit from an investment.
permanent investment
yield
bond
well-known discount brokers
14. A term that describes investments on which earnings are not taxed until retirement
market risk
tax deferred
variable expenses
Investing
15. A form of bankruptcy that allows you to erase most of your debt.
chapter 7
US Treasury Bills
coverage limit
US Treasury Bonds
16. Summary of a corporation's financial condition
annual report
corporate bonds
put-and-take account
risk management
17. A chosen pursuit - profession - or occupation
career
municipal bonds
credit history
spyware
18. Maximum amount of credit a lender will extend to a customer.
financial pages
put-and-take account
stock
credit limit
19. The use of long-term savings to earn a financial return
Investing
satellite decisions
chapter 13
annual report
20. The right & not the obligation & to buy or sell commodities or stocks for a specific price on a specific date
APR - Average Percentage Rate
political risk
risk management
options
21. Investment choices that will be re-evaluated within a year or less
over-the-limit fee
penny stocks
Temporary investment
full-service broker
22. Companies that provide extensive financial data to clients
investor services
Rule of 72
capital loss
stocks
23. Spreading risk among many types of investments; one way to minimize risk
financial pages
company risk
diversification
US Treasury Bills
24. 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.
APR - Average Percentage Rate
US Treasury Bonds
dividend
values
25. Standard and Poor's and Moody's
interest-rate risk
well-known investor services
annual fee
capital loss
26. 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.
stocks
mutual fund
interest
investor services
27. A legal process to get out of debt when you can no longer make all your required payments.
well-know full-service brokers
bankruptcy
penny stocks
bank
28. A certificate documenting the shareholder's ownership in the corporation
stock
state income tax
annual fee
strategic investing
29. Conservative investing; used when you have 'excess' savings
municipal bonds
Rule of 72
initial investing
credit report
30. On a credit card - the length of time you have before you start accumulating interest on an unpaid balance.
municipal bonds
well-know financial magazines
pay yourself first - P.Y.F.
grace period
31. Contacts to buy and sell commodities or stocks for a specific price on a specific date
credit report
futures
compounding interest rate
well-known discount brokers
32. Investors who are afraid to make investments
grace period
risk averse
futures
risk taker
33. Investing with a series of regular payments; usually associated with life insurance companies
bank
discount brokers
diversification
annuities
34. Conservative investing; used when you have 'excess' savings
savings account
initial investing
credit history
tax deferred
35. 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.
well-know financial magazines
interest
options
universal default
36. The belief - qualities - or standards that you consider important or desirable.
speculative investments
investor services
values
coverage limit
37. An amount that credit card companies can charge for the use of a credit card.
annual fee
financial pages
coverage limit
savings account
38. A spending plan for managing money during a given period of time.
budget
spending plan
universal default
dividend
39. Fee on credit card for making charges above your credit limit.
over-the-limit fee
credit
stock
futures
40. The maximum amount an insurance company will pay if you file a claim.
permanent investment
phishing
coverage limit
short term goal
41. Bonds designed for investors wanting to protect again inflation losses
share draft account
stock market
Series I Savings Bond
spending plan
42. Expenses that aren't paid every month and can be either fixed or variable.
periodic or occasional expenses
social security tax
Securities and Exchange Commission
US Treasury Bills
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
values
opportunity cost
diversification
44. Amount of money that is set aside for future purchases
corporate bonds
values
savings
options
45. Things that add comfort and pleasure to your life but you can live without if you need to.
mutual fund
Series I Savings Bond
credit report
wants
46. Maximum amount of credit a lender will extend to a customer.
credit limit
checking account
futures
options
47. Investors who are afraid to make investments
dividend
risk averse
permanent investment
budget
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.
pay yourself first - P.Y.F.
budget
mutual fund
over-the-limit fee
49. Pooling of money from many investors to buy a large & diverse selection of securities
full-service broker
mutual funds
satellite decisions
inflation
50. A for-profit company that is owned by its stockholders and provides savings and checking accounts and other financial services to its customers.
bank
investor services
company risk
full-service broker